A political shift is brewing in Central Europe. Days after a right-wing Eurosceptic won Poland’s presidential race, Hungary is back in the spotlight. Its controversial Sovereignty Protection Act is raising fresh questions about foreign influence and the future of democracy in the region.

Hungary says it’s defending its democracy. Critics say it’s doing the opposite.

The Sovereignty Protection Act, passed in December 2023, created a powerful new body – the Sovereignty Protection Office (SPO). Its role is to investigate individuals and organisations suspected of taking foreign money to influence politics. It has the power to demand financial records, name those under scrutiny, and do so publicly.

During elections, parties and candidates are banned from accepting certain foreign donations. Violating the law may result in criminal charges. Hungarian officials frame this as a defence of national sovereignty.

“Democratic decision-making must reflect the will of the Hungarian people,” the government said, “not that of foreign powers or their proxies.”

Fidesz party leader Máté Kocsis was more direct:

“We want to nettle left-wing journalists, fake civilians, and dollar-politicians.”

Opponents, however, are pushing back. In November, 31 NGOs challenged the law in Hungary’s Constitutional Court. The court dismissed their case. Now, they’re appealing to the European Court of Human Rights.

Meanwhile, the European Commission has launched legal action, arguing the law violates EU rules on political freedom and fairness. The case is now under review by the European Court of Justice.

A new draft law has added to the tension. The proposed Transparency of Public Life bill would expand the SPO’s powers further — allowing it to fine organisations and access their digital records.

Michael McGrath, the EU’s democracy commissioner, urged the Hungarian government to withdraw the legislation, warning that the European Commission is ready to act using “available legal and institutional tools.”

Still, Hungary remains defiant. With a new Eurosceptic president in Poland, some see a pattern: a broader push in parts of Europe to curb Brussels’ influence and tighten political control at home.

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