Hungarian parliament approves controversial NGO bill

Hungarian parliament approves controversial NGO bill
By Levente Szilagyi in Budapest June 13, 2017

Defying international criticism and the threat of sanctions, Hungary’s parliament on June 13 passed a controversial bill on NGOs, which is drawing comparisons with similar moves made in Russia.

The legislation, although amended before submission, stigmatizes foreign-funded civil organisations, according to critics, which include the European Commission. The law will force civil society groups that receive foreign funding to register as such, and advertise themselves as “foreign-funded” on all public materials and appearances.

Despite the fact that the financing of most NGOs is transparent and available on their websites, the legislation requires them to publicly declare funding sources, local media reported. The law stipulates that groups receiving more than HUF7.2mn (€23,445) from abroad annually will have to register as a “foreign-supported organisation”.

Dozens of NGOs reacted by declaring they will not comply with the legislation, and intend to launch a legal fight against the measure. Under the bill, those that refuse to comply risk closure.

After heavy criticism from European institutions, the ruling Fidesz watered down the controversial bill, but critics say the government has made only cosmetic changes. The underlying nature of the legislation is to stigmatize civil organizations, they claim.

In a statement released soon after the vote, Amnesty International said the law is an assault on civil society. It is aimed, the NGO said, at silencing critical voices and has ominous echoes of Russian’s draconian “foreign agents” law that was passed in 2012.

In its communications, the Hungarian cabinet has referred to NGOs as “agent” organizations, accusing them of serving the interests of George Soros, the US-Hungarian financier and philanthropist who has become public enemy number one for many populist rightwing organisations and activists across the globe, not least the government in Budapest.

The government accuses the investor of seeking to swamp Europe with migrants, which Budapest claims means importing terrorism. The NGO bill and the amended higher educational act that threatens with the closure of the Soros-founded Central European University, is seen by many as a strike against the Hungarian-born businessman.

The EU has stepped up pressure against Hungary in the wake of these regulatory changes. In May, the European Commission launched an infringement procedure against the bills and the European Parliament adopted a resolution to trigger Article 7, citing the serious deterioration of rule of law and democracy in the country. Brussels launched infringement proceedings against Hungary's refusal to accept refugees under the EU’s migrant quotas system on June 13.

“The Hungarian government has adopted a law that has no place in a democratic society,” said Marc Behrendt at the US state-funded Freedom House. “Its goal is to stigmatize civil society organizations that are critical of the government, and to stifle any dissent. With the government increasingly targeting independent institutions in academia, the media, and civil society, the European Union must recognize the gravity of the situation and initiate Article 7 proceedings against Hungary due to the clear and present risk to EU values.”

Under the amendments made to the legislation by Fidesz just ahead of introducing it to parliament, NGOs would lose the “foreign-funded” label one year after receiving financial support from abroad, rather than three as in the original bill. In another change, foreigners who donate less than HUF500,000 (€1,625) need not be identified. Opposition parties and civil groups are expected to challenge the constitutionality of the bill. 

 

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