Brussels sues Hungary over its 'national sovereignty' law

Brussels sues Hungary over its ‘national sovereignty’ law

A “national sovereignty” law to limit foreign influence brings Hungary to the Court of Justice of the European Union. This is what the Commission decided today, which referred the Hungarian government to the European high court, believing that its national law on the defense of sovereignty violates European law. This is because the law approved last December by Budapest – which according to some human rights organizations aims to silence government opponents – has two specific functions: it makes foreign financing of electoral campaigns illegal and it establishes a new Office for the Protection of sovereignty equipped with broad investigative powers.

The Commission’s spotlight has shone on the new body and its functions. As we have said, the law established the Office for the Protection of Sovereignty, which is responsible for investigating people and organizations suspected of undermining “national sovereignty” and “constitutional identity” through activities carried out in the interests of another State or a foreign organism. The Office may also collect information on individuals or groups that receive funding from abroad and are believed to be influencing democratic debate and electoral processes “in the interests of another State” or a “foreign body”.

Yet another clash between Brussels and Budapest

But how did we get to this point? In February 2024, the Commission sent a letter of formal notice to Hungary outlining its concerns. Having noted that the response provided by Hungary was unsatisfactory, in May 2024 the European executive sent a reasoned opinion reiterating the complaints relating to the violation of the fundamental rights enshrined in the EU Charter of Fundamental Rights, of the fundamental freedoms of the internal market and of European data protection legislation. In response to this reasoned opinion, Hungary argued that the Law on the Defense of Sovereignty does not violate European law.

Now the ball is in the court, which can order the Budapest government to comply with European regulations, as well as impose sanctions. This is yet another piece of an open conflict between Brussels and Budapest, precisely in the semester in which Hungary exercises the role of rotating presidency of the Union.