A 2017 Hungarian law on the transparency of foreign funding for NGOs, imposed in response to what Budapest called meddling by billionaire George Soros, violates EU laws, the union’s top court has ruled.
The Hungarian law required non-governmental organizations operating in the country to disclose foreign funding exceeding about $1,600. Such NGOs were supposed to register with the Hungarian courts, make the names of its foreign donors public, and report the fact that foreign funding had been received on their websites.
In a ruling reported on Thursday, the Court of Justice of the EU (CJEU) said the law imposed “discriminatory and unjustified restrictions with regard to both the organizations at issue and the persons granting them such support.” Hungary had breached several articles of the Charter of Fundamental Rights of the European Union, as well as violating its obligations on the free movement of capital within the EU, the court ruled.
The Hungarian restrictions, according to the court, “create a climate of distrust with regard to those associations and foundations.” They may result in withdrawal of funding by foreign backers and ultimately in the dissolution of the targeted NGOs.
It said Budapest had failed to prove that the transparency measures were warranted by the influence that such organizations exerted in the political life of Hungary. The law had cast too broad a net instead of targeting only organizations “which are genuinely likely to have a significant influence on public life and public debate,” a press release by the court said.
The Hungarian law was introduced as part of the feud between the government of Prime Minister Viktor Orban and Hungarian-born billionaire George Soros. Hungary accused Soros of meddling in its domestic affairs and put pressure on NGOs funded by him, ultimately forcing Soros to retreat.
Among the key aspects of the clash was disagreement over immigration policy. Soros is an advocate for the rights of refugees and sponsors various programs helping people to move into the EU and start a new life there. The Orban government rejects the open-door policy and has clashed with Brussels over quotas for refugees, which the EU authorities wanted all member states to accept in the wake of the 2015 migrant crisis.
The case reviewed by the CJEU related to sanctions imposed by the European Commission against Hungary over its crackdown on foreign-sponsored NGOs.
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