The so-called “Transparency Law”, currently pending approval, significantly undermines freedom of expression in Hungary — and its impacts are unlikely stop at the country’s borders.
While some funds for Hungary had already been cut there was no precedent of the EU cutting all funding marked for a member state.
However, Teona Lavrelashvili, a visiting fellow with the Wilfried Martens Center in Brussels, said this could be done.
“Yes, the European Union can suspend funds to Hungary if its new transparency bill — or any law — undermines the rule of law or threatens the EU’s financial interests. This power comes from the Rule of Law Conditionality Mechanism.”
She contended that a law that weakens civil society also undermines the EU’s overall economic interests.
[…]
The EU also has other options that it can resort to before cutting funds intended to aid economic development in Hungary and thus to benefit the general population.
Back in 2017, it managed to dissuade Hungary from introducing a similar transparency law by initiating an infringement procedure, a multilayered process through which the EU expressed its displeasure to Hungary. Upon no change in Budapest’s attitudes, Brussels eventually took Hungary to the Court of Justice of the European Union (EU).
The court concluded that Hungary had “introduced discriminatory and unjustified restrictions on foreign donations to civil society organizations.”
Since the new bill was tabled last week, the EU has refrained from scolding Hungary and merely said it is waiting to see whether it is enacted into law.
[Program officer at the German Marshall Fund of the US Zsuzsanna] Vegh believes another infringement procedure is the EU’s likely next step.
But the fact that Hungary is trying to push through the law again, may require the EU to change its approach and take a more stern stand.
The General Affairs Council of the EU will meet on May 27 to discuss the possibility of applying Article 7 of the Treaty on European Union to Hungary, which would allow the EU to suspend a member country’s voting rights.
Article 7 of the Treaty on European Union allows for the possibility of suspending EU membership rights if a country seriously and persistently breaches the principles of the EU, such as those of human dignity, freedom, democracy, equality, and the rule of law.
How can EU ensure Hungary aligns with the bloc’s value system?
While some funds for Hungary had already been cut there was no precedent of the EU cutting all funding marked for a member state.
However, Teona Lavrelashvili, a visiting fellow with the Wilfried Martens Center in Brussels, said this could be done.
“Yes, the European Union can suspend funds to Hungary if its new transparency bill — or any law — undermines the rule of law or threatens the EU’s financial interests. This power comes from the Rule of Law Conditionality Mechanism.”
She contended that a law that weakens civil society also undermines the EU’s overall economic interests.
[…]
The EU also has other options that it can resort to before cutting funds intended to aid economic development in Hungary and thus to benefit the general population.
Back in 2017, it managed to dissuade Hungary from introducing a similar transparency law by initiating an infringement procedure, a multilayered process through which the EU expressed its displeasure to Hungary. Upon no change in Budapest’s attitudes, Brussels eventually took Hungary to the Court of Justice of the European Union (EU).
The court concluded that Hungary had “introduced discriminatory and unjustified restrictions on foreign donations to civil society organizations.”
Since the new bill was tabled last week, the EU has refrained from scolding Hungary and merely said it is waiting to see whether it is enacted into law.
[Program officer at the German Marshall Fund of the US Zsuzsanna] Vegh believes another infringement procedure is the EU’s likely next step.
But the fact that Hungary is trying to push through the law again, may require the EU to change its approach and take a more stern stand.
Addition:
EU Debates Suspending Hungary’s Voting Rights