EC starts infringement procedure against Hungary over NGO law

EU

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 In particular, Hungary has not repealed the Transparency Act, which was found contrary to EU law," the EC said.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.

 

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