On 13 May, under the guise of transparency and protecting sovereignty, Hungary’s government launched an unprecedented attack against civil society, independent media, and any legal entity, including businesses, that the government decides to target for opposing its authoritarian rule. The Bill comes amidst a wider effort to stigmatise and threaten organisations critical of Hungary’s democratic erosion, and PM Orbán’s threat to carry out a “spring cleaning”. 

A new Bill on the Transparency of Public Life was submitted on 13 May by a member of Hungary’s ruling Fidesz party. The Bill would allow the government to blacklist a broad range of commercial companies, independent non-profit civic and for-profit media organisations and block their access to financial resources if they receive revenues from abroad and are considered to threaten Hungary’s sovereignty. Activities funded from foreign resources, including those supported by other EU member states or by EU institutions constitute a threat to Hungary’s sovereignty, if they “violate, or portray in a negative manner, or support action against the values defined” in politically cherry-picked sections of Hungary’s constitution. 

Being blacklisted can strangle organisations by severely limiting their ability to operate. This includes blocking access to “foreign” resources such as commercial income, grants, or donations; imposing burdensome administrative obstacles to receiving domestic funding; and potentially leading to the organisation’s eventual dissolution.  

The Bill, already under discussion in Parliament, is scheduled for a final vote during the 10-12 June session. Once adopted, the last line of defence against the erosion of democratic norms and fundamental rights in Hungary will be eliminated. Within 72 hours after the law takes effect, blacklisted entities could effectively lose access to their resources. 

Given the attack’s pace and intensity, we urge the European Commission to take swift legal action against the law, seek interim measures from the EU Court of Justice in the ongoing lawsuit related to the 2023 sovereignty protection law, and ensure full compliance with the Court’s earlier judgment in the Hungarian LexNGO case.  

To get the joint document of Hungarian CSOs, click here.