EC starts infringement procedure against Hungary over NGO law
The European Commission on Thursday said it launched an infringement procedure against Hungary for failing to implement a Court of Justice (CJEU) ruling on legislation regarding foreign-funded NGOs, according to a report by state news wire MTI.
The EC said it is sending Hungary a "letter of formal notice", marking the start of an infringement procedure, but noted that as the matter involves Hungary's failure to comply with a CJEU ruling, it can refer the matter back to the court and ask for financial sanctions.
The CJEU ruled in June 2020 that Hungarian legislation requiring NGOs to make full disclosure of foreign funding over a certain threshold violates EU rules on the free movement of capital as well as the fundamental rights to protection of personal data and freedom of association protected by the EU Charter of Fundamental Rights.
"The Commission considers that Hungary has not taken the necessary measures to comply with the judgment, despite repeated calls from the Commission to do so as a matter of urgency. In particular, Hungary has not repealed the Transparency Act, which was found contrary to EU law," the EC said.
Hungary has two months to respond to the EC concerns in the letter of formal notice.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.