EU sues Hungary over new security law

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Brussels has sued Viktor Orbán’s government over a new security law that the bloc says is in breach of citizens’ fundamental rights, the latest escalation in long-running tensions with Budapest.

The European Commission said on Thursday the Hungarian “sovereignty law” that entered into force in February violated EU rules on privacy, freedom of expression and freedom of association. People and organisations deemed a threat to national sovereignty in Hungary — a loosely defined concept — and who are accused of using foreign funding to influence political processes are facing fines and prison terms.

“The law violates several fundamental freedoms of the internal market,” the commission said. Brussels had already requested changes earlier this year but “most of the grievances” remain unaddressed.

During his 14 years in office, Prime Minister Orbán has repeatedly locked horns with Brussels over the gradual erosion of civil rights and the rule of law. His self-styled illiberal regime is often cited as a model by rightwing politicians including US presidential contender Donald Trump.

The EU will refer the case to the European Court of Justice and request “that the case is dealt with swiftly, including if appropriate through an expedited procedure”, according to commission spokeswoman Jördis Ferroli.

Dániel Hegedűs, a fellow at the German Marshall Fund, a US think-tank based in Berlin, said: “The government has increased room to crack down on dissent, they created this tool precisely to use it. There will be more surveillance of regime critics and more of a media campaign against them, but it remains to be seen whether there will be criminal cases too.”

The decision comes alongside several other legal steps Brussels is taking against Hungary on other issues. The commission has called out Orbán’s government over a law adopted last year that penalises convicted human traffickers very lightly, making it harder for the bloc to fight illegal migration.

“Such shortened sanctions applicable to persons sentenced for migrant smuggling offences are neither effective nor dissuasive,” the commission said.

The law on traffickers was adopted despite Orbán’s declared desire for “ethnic homogeneity” and his incendiary rhetoric against migrants, which he calls a fundamental challenge to the social and cultural make-up of Europe.

A recent ECJ ruling has also ordered Budapest to pay €200mn and daily €1mn fines for failing to comply with a judgment on the protection of asylum seekers.

Brussels also pursues Hungary over a special tax regime that allegedly imposes unfair increased costs on foreign companies in breach of EU law.

The move comes after a complaint by Austrian supermarket chain Spar earlier in the year claiming that a special tax introduced in 2022 was discriminatory, including a 4.5 per cent tax targeting revenues of foreign-owned retailers and an obligation to lower prices on specific products.

Hungarian officials did not immediately reply to requests for comment.

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