Hungary ruling party drafts bill to crack down on foreign-funded organisations

BUDAPEST (Reuters) - Hungarian Prime Minister Viktor Orban's Fidesz party submitted a bill to parliament which would list organisations that receive foreign financing and curtail their activities if they are deemed a threat to Hungary's sovereignty.

Orban pledged to crack down on foreign funding of independent media, opposition politicians and NGOs in March, stepping up his campaign ahead of elections due in 2026 when he faces an unprecedented challenge from a new opposition party.

The legislation, submitted late on Tuesday, would allow the Sovereignty Protection Office (SPO) to draw up a list of foreign-funded legal entities whose activities are considered to be a threat.

They could be listed if the SPO says their activities "undermine Hungary’s independent, democratic and rule-of-law-based character" or violate Hungary’s constitutional identity or Christian culture.

Challenging the primacy of marriage, the family and biological sexes would also be considered a threat.

Organisations on the list will have their bank accounts monitored, and funds from abroad considered a threat can be blocked.

If the bill is passed, authorities will be allowed to enter offices of organisations and examine their documents and electronic devices.

If an organisation accepts foreign money, it has to pay a fine 25 times more than the actual funding received. If they are unable to pay the fine within 15 days, they must cease operations, the bill says.

Representatives of the Hungarian Helsinki Commission and Transparency International Hungary, organisations the government has said are foreign-funded, were not immediately available for comment.

In March, parliament passed a bill that allows the annual Pride march by the LGBTQ+ community to be banned, triggering protests.

The Sovereignty Protection Office was created by the government in 2023 to monitor risks in what the ruling Fidesz party called undue political interference by foreign persons or groups.

The European Commission launched an infringement procedure over the law that created the SPO, citing its potential to undermine the EU's democratic values and fundamental rights.

(Reporting by Anita Komuves, editing by Ed Osmond)