On Thursday 13 July, the European Commission entered new stages in its action against Hungary by sending a reasoned opinion to the country on issues for which it has already opened infringement proceedings, namely foreign universities, including the University of Central Europe (see EUROPE 11775), and launching a new infringement proceeding by sending a warning letter to Hungary over its controversial law on foreign NGOs.
The action comes against a backdrop of broader criticism of Hungary over its asylum reforms (see EUROPE 11790) and shortcomings vis-à-vis the EU system for relocating asylum-seekers (see EUROPE 11807).
The law on foreign universities and higher education disproportionately infringes the functioning of universities in the EU and elsewhere and must be brought into line with EU law as soon as possible, explained the European Commission vice-president, Frans Timmermans, in a press release.
The Commission says the law adopted on 4 April, which has had a lot of media coverage because of links between the University of Central Europe and its founder, Hungarian billionaire Georges Soros, does not comply with the freedom granted to higher education establishments to provide services anywhere in the EU.
The European Commission says that its remains of the opinion that the new law goes against academic freedom, the right to education and the freedom of enterprise foreseen in the European Union’s Charter of Fundamental Rights and is not compatible with the EU’s legal obligations under international trade law.
After examining the Hungarian authorities’ response, the Commission has retained its legal assessment that the amended law is still incompatible with fundamental freedoms on the Single Market.
Hungary now has a month to respond to the reasoned opinion or risk being sent to the European Court of Justice.
Law on NGOs under the spotlight
Passed on 13 June, the Hungarian law on NGOs introduces new obligations on some categories of NGO receiving more than 7.2 billion Hungarian forints (circa €24,000) a year.
Such NGOs are required to register as bodies receiving foreign support; describe themselves as such in all press articles and publications, including on their website; and provide the Hungarian authorities with information specifically about the funding they receive from abroad.
Failure to comply with the new declaration and transparency rules means that the NGOs would risk sanctions, explains the Commission.
The European institution says this law unlawfully damages the fundamental freedoms laid down in the EU Charter of Fundamental Rights, notably the freedom of association. It could prevent the NGOs in question from fund-raising and would limit their ability to properly carry out their work. It introduces unjustified and disproportionate restrictions on the free circulation of capital. The new registration, declaration and publicity demands are discriminatory and put an administrative burden and damage the image of the organisations in question, adds the Commission.
Finally, the Hungarian law raises concerns about respect of the right to protection of privacy and personal data.
Here too, Hungary now has only month (rather than the unusual two months) to respond to the Commission. (Original version in French by Solenn Paulic)