With democratic backsliding threatening the European project, it is crucial to call out any development that might put it at further risk. In this piece, Margarida Martins and Ruby Silk examine Hungary’s foreign agents law within a broader context – highlighting how such measures are often disguised as efforts to promote transparency and strengthen democracy.
Europe is currently facing a troubling wave of democratic backsliding. Ironically, some of these authoritarian shifts are being justified under the guise of promoting “transparency” and “protecting democracy.” One of the most striking recent examples comes from Hungary, where a member of the ruling Fidesz party submitted a new bill entitled the “Transparency of Public Life”, which would enable the government to target, defund and dissolve any organisation in receipt of foreign funding that it designates as “a threat to Hungarian sovereignty”. This bill, if adopted, would provide the government with the final tools to effectively and completely silence the remaining independent voices in Hungary.
Devastating consequences
It is not surprising that the bill was not open to public consultation. Such a law would have a devastating effect on civic space in Hungary. The bill would apply to a huge swathe of non-governmental organisations – from civil society and media organisations to private companies and possibly even political parties – in receipt of foreign funding, including grants from the EU institutions. With the broad and vague qualifier of being a “threat to national sovereignty”, these rules risk opening the door to the defunding and dissolution of organisations for political reasons.
Practically speaking, this means that if the newly established Sovereignty Protection Office (SPO) determines that a foreign-funded organisation’s activities are unfavourable, it may recommend that the government place the organisation on an official blacklist. The proposed law would also allow authorities to conduct intrusive inspections, seize documents and devices, and impose severe fines. Additionally, it would remove the last vestiges of public oversight over the use of EU funds. Authorities and businesses have already been found to misappropriate these funds – often to the detriment of the environment – and this measure would deal a further blow to transparency and accountability.
Europe, take action!
Such a law would violate the right to freedom of expression and association, the right to effective judicial protection and the right to protection of private life guaranteed under the EU Charter of Fundamental Rights, the European Convention on Human Rights and the International Covenant on Civil and Political Rights. Over 300 civil society organisations have thus signed a letter calling on the Commission President and Commissioner for Justice to make an immediate request to the Court of Justice of the European Union (CJEU) to grant interim measures in the ongoing infringement procedure on the Law on the Defence of National Sovereignty (Case C-829/24), as well as funding conditionality and the Article 7 TEU process (this Article contains a procedure for addressing a clear risk of a serious breach of EU values by a Member State. It can lead to suspension of certain rights, including voting rights in the Council of the EU.)
The European Commission has since told Hungary to scrap its Transparency of Public Life bill or face possible legal consequences.
A worrying trend
Hungary is not the only place this worrying trend can be seen, though. Russia has long had a “foreign agents” law that the Kremlin uses to suppress NGOs and independent voices, a law that the European Court of Human Rights in 2022 ruled violated freedom of expression and association. Despite the ruling, similar laws have sprung up like unwelcome weeds in Georgia, Kyrgyzstan, Slovakia, Serbia, and Bosnia and Herzegovina. The spread of foreign agents laws risks dismantling civil society and silencing environmental and human rights defenders.
In the EU itself, too, a controversial Directive on “transparency of interest representation carried out on behalf of third countries” is being negotiated. While the name of the law might be less direct, it has the potential to be just as harmful. Proposed as part of the Defence of Democracy package, this Directive could undermine CSOs’ ability to fulfil their role as defenders of democracy in Europe and beyond. Proposing such a piece of legislation in the name of protecting democracy is deeply contradictory, as civil society is essential to democratic health and ensures diverse voices are heard in public debates.
These developments, while extremely worrying, are sadly not that surprising if you have been paying attention to right-wing narratives around civil society in the past few years. Civil society in Europe has been facing an unprecedented attack fueled by disinformation and misleading arguments, particularly regarding funding. This attack, spearheaded by some Members of the European Parliament from the European People’s Party and far-right groups, is working to fabricate an artificial scandal and has been amplified by badly informed media articles.
Given this broader context, these foreign agents’ laws are clear for what they are – just another attempt to weaken and silence civil society and those working for the public interest. Any measure aiming at increasing transparency and accountability regarding covert foreign interference cannot sacrifice compliance with EU and international human rights laws.
Defending democracy means defending CSOs
The proliferation of foreign agents style laws is not a step toward transparency, but a calculated move to dismantle civil society under the pretense of protecting democracy. Hungary’s proposed “Transparency of Public Life” bill is only the latest – and perhaps one of the most alarming – examples of this dangerous trend. These laws weaponise vague language around sovereignty and foreign influence to justify the erosion of fundamental rights and freedoms, threatening the very democratic values they claim to defend.
Civil society, journalism, and public accountability mechanisms are not threats – they are essential safeguards in any functioning democracy. The EU must treat this moment as a litmus test for its commitment to democratic principles and human rights. Robust and immediate action is needed not only in the case of Hungary but against all efforts to use transparency as a smokescreen for authoritarian control. Defending democracy means defending those who stand up for it, not silencing them.
