Shortly before midnight on Tuesday, János Halász, a member of parliament representing Fidesz, tabled a bill entitled "On transparency in the public sphere," which is designed to make it extremely difficult for Hungarian organizations receiving funds from abroad to operate and exist. According to the proposal, if the Sovereignty Protection Office deems that the activities of a foreign-funded organization threaten Hungary's sovereignty, it may recommend that the government place the organization on a list.
Once on the list, the organization would no longer be able to collect 1 percent of tax donations (in Hungary it possible to specifically allocate one percent of one’s personal income tax to certain organizations and causes of one’s choosing-TN) and would be obligated to request a "fully conclusive private document" from all of its supporters and pertaining to all of its funding, stating that the money did not come from abroad.
According to the law, all money coming from abroad may be a threat to the country's sovereignty, including funds obtained through transparent tenders. This also includes EU tenders entered by organizations operating in EU member states.
Furthermore, the senior officers, founders, and members of the supervisory or audit committees of the organizations on the list are required to make a declaration of assets and will be considered politically exposed persons.
If it is found that the organization has nonetheless accepted foreign funding, the anti-money laundering authority will impose a fine equivalent to 25 times the amount of the funds received, which must be paid within 15 days. The proceeds from such fines and all assets of organizations dissolved in accordance with the law will be transferred to the National Cooperation Fund.
The agency may also conduct on-site inspections, which means that it may visit the listed organizations, where it may inspect all documents, computers, and data storage devices and make copies of them. It may also request the assistance of the police in carrying out these inspections.
But what constitutes a threat to the country's sovereignty? According to the proposal, anything that harms or portrays in a negative light
- the country's independent, democratic and constitutional character;
- the unity of the nation and its responsibility for Hungarians living beyond the borders;
- the primacy of marriage, family and biological gender;
- peace, security and cooperation with other countries;
- the country's constitutional identity and Christian culture.
According to the proposal, the country's sovereignty can be jeopardized by activities that are capable of influencing public opinion—and any activity that could influence the will of voters or democratic debate is considered as such.
As the proposal states, the new provisions will enter into force on the third day after the adoption of the law, but the organizations included in the list will only be prohibited from collecting the 1 percent donations from the following tax year.
For now, it is not clear from the proposal when the Sovereignty Protection Office has to make a recommendation to the government about who should be added to the list of organizations that threaten the country's sovereignty.
János Halász justified the legislative proposal by saying that in recent years, "cases of serious infringements on Hungary's sovereignty have come to light." In the introduction, he seeks to support the proposal with the results of the national consultations held in recent years.
In his speech on March 15, Prime Minister Viktor Orbán called NGOs critical of the government, independent journalists, and the judges who demonstrated for the independence of the judiciary and opposition politicians "bugs who have made it through winter." According to Fidesz's narrative, all of these people are funded from abroad. "We've had enough of them. Tavaszi szél vizet áraszt" (lit:Spring winds bring floodwaters – the first line of a traditional Hungarian folk song -TN), he said, adding: let the waters take them away. The scarlet letter is upon them, may their fate be shame and contempt. If there is any justice, and there is, there is a special place waiting for them in hell," the Hungarian Prime Minister said at the time, adding that "spring cleaning" will commence by Easter.
The speech sparked widespread outrage, with psychologists, psychiatrists, judges, and academics from the Hungarian Academy of Sciences protesting against it in various ways, but neither the public prosecutor's office nor the President of the Republic found anything objectionable in it.
When the Sovereignty Protection Office was established, it was not yet clear what the outcome of its reports would be, but it has now become apparent that they have been given an important role in suppressing the voices of those critical of the government.
If you missed it earlier, our video explains more about how the Sovereignty Protection Office (SPO) serves the ruling party and uses a vocabulary reminiscent of the communist era in the process: