The European Commission has escalated its ongoing legal confrontation with Hungary by referring the nation to the European Court of Justice (ECJ) over its Sovereignty Protection Act. This national legislation, effective since December 2023, is being challenged on the grounds of violating essential EU principles. The act established the Sovereignty Protection Office (SPO), an independent body endowed with expansive investigative and punitive powers over bodies receiving foreign funding believed to influence Hungarian public discourse. Those convicted under this legislation could face penalties including imprisonment for up to three years.
While the Hungarian government maintains that the Sovereignty Protection Act is aimed at preventing foreign electoral and political interference, the EU has raised concerns over the broad discretion given to the SPO. The Commission is particularly worried that such powers could be applied in a manner that encroaches upon civil liberties, potentially targeting civil society groups, media, and journalists. Earlier this year, the SPO’s actions included initiating investigations against organizations like Transparency International Hungary and the non-profit journalism entity Átlátszó.
As emphasized in the European Commission’s statement, the infringement procedure was initiated in February 2024 after the Commission concluded that the legislation infringes on key EU values such as democracy, individual market freedoms, and fundamental rights set forth in the Charter of Fundamental Rights of the EU. The Commission asserts that the act undermines the rights to private life, freedom of expression, and assembly.
This referral to the ECJ follows two unsuccessful attempts by the Commission to have Hungary amend its laws to comply with EU standards. As the principal judicial authority within the EU, the ECJ is now tasked with resolving this dispute. This move marks a continuation of a series of disagreements between the EU and Hungary, further highlighted by recent clashes over Hungary’s migrant policies, which led to the EU imposing a 200 million euro fine on Hungary and a threatened lawsuit from Hungary against the EU for border protection expenses.