Transparency International Hungary has condemned a new draft law submitted by the ruling Fidesz party, calling it “an authoritarian attempt to retain power” and a direct threat to Hungary’s remaining democratic institutions.
In a statement published Wednesday, the watchdog warned that the proposal aims to silence critical voices and equated the move to the systematic dismantling of civil society seen in Russia under Vladimir Putin.
Reactions also came from the EU. The Dutch MEP, Tineke Strik, stressed that “Orbán’s new anti-NGO law would be the death of civil society and is a frontal attack on the EU, with EU funding seen as foreign interference.”
“How much worse must it get before the Council finally proceeds with Article 7 to defend Hungary’s rule of law and citizens?” she wrote on X.
Hungary’s ruling Fidesz party has proposed a controversial bill that could allow the government to label foreign-funded organizations as threats to national sovereignty—subjecting them to sweeping restrictions and severe penalties.
Fidesz lawmakers submitted the draft legislation, titled “On the Transparency of Public Life,” to parliament on May 14. If enacted, it would empower the recently established Sovereignty Protection Office (SPO) to investigate any civil society group, media outlet, or public figure receiving money from abroad—including grants from the EU. The SPO could then place those entities on a public blacklist.
Organizations listed would be barred from participating in Hungary’s popular “1 percent tax donation” program—which lets citizens allocate a portion of their income tax to NGOs—and would be required to prove that all their funding originates within Hungary. Their leaders would also face strict asset disclosure rules.
The SPO would be authorized to inspect offices, seize documents and electronic devices, and impose fines up to 25 times the amount of foreign funding received. Targets would have just 15 days to pay or risk being shut down.
The bill defines “threats to national sovereignty” broadly—including attempts to influence public opinion, promote democratic debate, or challenge “Christian values” and traditional family roles. Expressing support for same-sex marriage or gender equality could also be grounds for designation.
Fidesz MP János Halász, speaking for the party, said the bill is needed due to “abuses that seriously violate Hungary’s sovereignty.”
Prime Minister Viktor Orbán has echoed similar rhetoric in recent speeches. In March, he warned of a “shadow army” of foreign-backed activists, journalists, and judges allegedly seeking to undermine the state. He referred to his political opponents as “insects” and hinted at a sweeping “spring cleaning.”
The Sovereignty Protection Office was created in December 2023. The European Commission has already launched an infringement procedure over the SPO law, warning it may breach core EU principles.
Critics say the new bill is part of Orbán’s broader effort to silence dissent and tighten his grip on power ahead of the 2026 national elections. In recent years, his government has expanded control over the courts, media, and education, while repeatedly clashing with EU institutions over democratic norms.
If passed, the law could further isolate Hungary within the EU and deliver a significant blow to its embattled civil society.