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The vague and undefined concepts in the new Hungarian “sovereignty bill” aimed at countering “foreign interference,” and the powers of a new authority present a threat to independent media.

On December 12, the Hungarian Parliament approved a new bill focused on “protecting national sovereignty.” Although the ruling party, Fidesz, claims that the law aims to prevent “undue political interference” by foreign agents, a closer examination reveals potential threats to press freedom and concerns over undefined parameters within the legislation.

A central feature of the bill is the establishment of a Sovereignty Protection Authority (SPA), which is empowered to investigate “foreign interference,” including acts of disinformation that influence democratic debates. Notably, the law lacks explicit clarification on the definition of “foreign interference,” leaving the interpretation to the discretion of the authority. This ambiguity raises concerns about the potential inclusion of independent media organizations as targets, particularly given the government’s historical hostility towards such entities that receive foreign grants. These organizations have long been targeted by the government’s propaganda machine, which labels them as “dollarmedia” for accepting foreign funding.

Hungarian experts say that intentionally vague definitions and the inclusion of undefined concepts in the legislation serve a deterrent purpose. Drawing parallels with the media law, one of the first major legislations passed after Fidesz had regained power in 2010, the broad interpretation possibilities granted to the SPA could lead to an atmosphere of uncertainty, similar to the effects observed when the new media authority was established.

The legislation provides unclear guidance on potential sanctions, which range from publishing investigation results to initiating criminal proceedings. The SPA is granted sweeping powers, enabling it to interrogate any individual, scrutinize all data of the targeted organization (including confidential contracts and tax files), and summon its head before the Parliament’s National Security Committee. The alarming aspect is that the SPA operates outside the judicial system and lacks any form of oversight, which raises concerns about the potential misuse of power. Furthermore, it has also been revealed that a loyal Fidesz cadre has been nominated as the head of the SPA. This individual is also known for having served as the editor-in-chief of a government-friendly weekly a few years ago. During his tenure, the publication caused a scandal by publishing a list of “agents of George Soros” in Hungary.

The broad investigative authority of the SPA, coupled with the lack of oversight, could have a chilling effect on media organizations, especially smaller ones heavily reliant on foreign grants. The fear of investigations disrupting their operations may lead such organizations to reconsider applying for foreign funding, further challenging their sustainability within Hungary’s captured media landscape.

In an unprecedented move, ten independent Hungarian news organizations issued a joint statement a day after the passage of the bill. They argue that the legislation severely restricts press freedom, potentially making it difficult or even impossible for independent newsrooms, journalists, and media companies to operate effectively.

While some government officials had previously downplayed that the new bill would target free press, Hungarian Prime Minister Viktor Orban confirmed this in a recent statement on national radio. “The Sovereignty Protection Act makes it clear that loopholes will be closed, dollars cannot roll into the coffers of the left and the left’s media. It’s not fair that foreign money is used to influence people’s political decisions according to the interests of their sponsors,” he said.

As a worrisome development, Hungary is not the only country exhibiting increased scrutiny of foreign funding for independent media lately. In November, Azerbaijan, where President Ilham Aliyev is an ally of Orban, summoned U.S., German, and French envoys to protest against what it calls “illegal financial operations” targeting investigative news outlet Abzas Media. Three journalists from Abzas Media have been detained, and the charges against them include smuggling. During the raid on the outlet’s office, police claim to have found €40,000. Similar to Hungary, the crackdown was accompanied by a campaign in the government’s propaganda machine, accusing Abzas Media of illegally bringing undeclared foreign grants into the country.

These developments may mean that some donors will have to reconsider their grantmaking strategy, either out of caution or because grantees may urge them to do so to avoid unwanted repercussions. Hungarian media organizations receiving foreign funding will most likely be under scrutiny in the upcoming months, prompting some donors and implementers to find “innovative” solutions to continue operating in the country, development that we will document in the Journalism Funders Forum newsletter.

As the world gears up for what has been touted by The Economist as “the biggest election year in history”, with a staggering 76 countries set to hold elections, the implications for media freedom loom large. Here are six key elections that will likely have a major impact on media freedom, some of them with clear implications for independent media in Europe.

US Presidential Elections: Will Trump Make a Comeback?

The upcoming US presidential elections pose the pivotal question: Will Donald Trump stage a return to the White House? Amidst the challenge of winning the Republican primaries, polls indicate a favorable chance for Trump. If he emerges victorious, concerns arise over a potential surge in disinformation, smear campaigns against the media, and cuts in funding for independent media. These issues could impact global perceptions and bolster populist leaders worldwide. According to data collected by the Media and Journalism Research Center, Trump’s return to power is likely to have a significant impact on the funds of American development agencies dedicated to supporting media and journalism, which are active in many European countries.

European Parliament: Rise of the Populist Far-Right

In early June, citizens of the 27 EU Member States will cast their votes for the European Parliament. The pressing question is whether the rise of far-right parties in certain countries will reverberate within the EU elections. Polls suggest gains for Eurosceptics and populists, raising uncertainties about their influence on EU policymaking, including media regulation and support for independent press. As in the United States, millions of euros in funding  now earmarked for support of independent media and journalism could be jeopardized.

India: Will the Democratic Decline Continue?

India, the world’s most populous democracy, is facing the prospect of President Narendra Modi securing a third consecutive term. The last few years of his reign have been marked by ongoing campaigns against the Muslim minority as well as numerous attacks on critics and news media, including tax raids, arrests of journalists, and targeting them with the Pegasus spyware. Modi’s government has curbed press freedom through legislation and regulation, giving the government increasing control over the information space. In elections, he will face a coalition of 28 parties, led by Rahul Gandhi.

Romania: Surge of the Far-Right

Romania is bracing itself for presidential and parliamentary elections amidst the rise of the far-right party AUR, which has surpassed 20% in recent polls. AUR is characterized by Christian fundamentalism, sovereignism, and anti-scientific sentiments. The sympathy of AUR’s leader George Simion towards Hungary’s Viktor Orban and his Fidesz party, as well as the shared disinformation narratives between the two parties, hint at the potential direction Romania may take with Simion in charge. According to data from local journalists, AUR is believed to have strong financial backing from Russia. Its narrative is blatantly supportive of Russia and its war against Ukraine. AUR’s win is expected to have negative consequences on the independent media in Romania. The party has been building its own media in recent years and has been lashing out against critical journalists. AUR is also known as one of the country’s main sources of disinformation.

Austria: Far-Right Resurgence

Austrians will also head to the polls this year, and the parliamentary elections may bolster far-right populist parties, according to analysts. The Freedom Party (FPÖ) was shaken by the so-called Ibiza scandal four years ago. The party’s President, Heinz-Christian Strache, was recorded talking about corrupt political practices, including references to their wish to build a media landscape like Viktor Orban did. Now, the FPÖ is the most popular party in the country, signaling potential challenges for media freedom in Austria.

Mexico: Disinformation on the Rise

Mexico is poised to witness a historic moment in June, as it is likely to elect its first female president. Analysts describe Claudia Sheinbaum, the candidate of the ruling party, as less populist than the current president, Andres Manuel Lopez Obrador. However, concerns have arisen over online, state-sponsored disinformation targeting the opposition candidate, Xochitl Galvez, as well as the electoral authority. During Lopez Obrador’s regime, media outlets, especially state-controlled ones, saw their independence dwindling as a result of attacks and interference with their editorial agenda.

The outcome of these elections will have a significant influence on media freedom in the respective countries, with some of them expected to have worldwide implications as well. The media will also be scrutinized during the campaigns as elections are expected to be heavily influenced by both traditional and social media. While numerous studies focus on social media content during election periods, less attention is given to the influence of the media market’s structural conditions on election fairness and outcomes. Therefore, the Media and Journalism Research Center has launched a new project focusing on media ownership and political finance, and it will collect data about media, spending, and political parties in around 40 countries in 2024. The research will be used to issue a comparative study in 2025, yet some of the data will be shared in the upcoming JFF newsletters.

A reflection on the Journalism Funders Forum’s in-person event, 16 February, Brussels
By Are We Europe

On 16 February, Philea and the Journalism Funders Forum (JFF) held their first ever in-person event together, bringing together representatives of foundations to discuss their mission of supporting public interest journalism in Europe.

The role of independent journalism in society has never been more important than in the current moment. It is what builds a bridge between communities and ensures balanced information is available to all. Over the past decade, media oppression has been on the rise in both authoritarian states and open societies in Europe. Media organisations and freelance journalists alike increasingly turn to philanthropic funders for support to continue their work despite increasingly difficult conditions.

JFF aims to support the funding landscape for journalism in Europe through three strands of work. Firstly, by improving learning opportunities and knowledge about journalism funding across the continent. Secondly, the forum works to diversify and increase the number of journalism funders in Europe, as well as foster connections between them. Thirdly, the forum strives to help build a more effective, transparent and equitable funding environment for journalism in Europe.

At the event in Brussels, funders had the opportunity to share successful strategies, learnings and challenges that they face in supporting public interest journalism. Openly sharing one’s challenges and hopes is the only way to entice other funders that are not yet active in journalism to do so. Just like in journalism, honesty is key.

A pillar of democracy

While many would hope that quality journalism can fund itself, the past few decades have irreversibly damaged most media outlets’ business models. The internet is the straw that broke the proverbial camel’s back, paving the way for higher outreach but also forcing many publications to put their content behind a paywall in order to remain sustainable. Some would say the latter hinders journalism’s duty to contribute to public discourse.

Throughout the day, an ever-present topic on the discussions was democracy. After all, journalists and their work are essential contributors to informed communities. While many foundations do not explicitly name journalism in their mission statements, it is through their commitment to upholding democracy that they, too, should support this field. Independent, quality journalism contributes to a healthy democracy. And journalism should be free from any influence that may impact their editorial output. Protecting this independence plays a crucial role in what philanthropic funding can do for journalism today. But how can this work be funded sustainably? 

The challenges to funding independent journalism are not unheard of. Funders, of course, need to find quality journalism to support. In turn, many journalists would argue that they simply do not know the relevant funding organisations to contact. The interdependence between journalists and their funders is evident, but it is discussions around the type of funding needed, and how funders can work together to maximise impact, that made the gathering in Brussels so uniquely impactful.

Stability is key

When investigating the ways in which philanthropy can support media organisations, core funding is of great importance. Core funding allows for the necessary breathing room between projects that contributes to better journalistic output. It furthers the creation of sustainable structures within a media outlet and offers opportunities for professional development. It also removes the incentive some might receive from project-based grants to just “go for the money” to survive. Simply put, not worrying about whether they can break even next month allows journalists to thrive. Stability is key. 

This very stability is the one that can allow for the time and resources for journalists to tackle extensive or sensitive topics that can often be more labour-intensive. Unrestricted support from a funding body can help to bring out the best of what journalism can do, speaking truth to power and contributing to societal change. 

The case for pluralism and funder collaboration

As much as cross-border journalism is becoming a reality in newsrooms today, collaboration should be of equal importance among funders. Like most things in life, it’s a two-way street. Pluralism in funding is essential to a system in which pluriform media thrives. And media diversity is vital. When funders act as a group, they send a clear message of support.

While stability is vital to journalists, it is equally important to funds. But there are solutions. Pooled funds are aggregated funds that allow interested parties to fund journalism without being experts on the topic. As the idiom goes, there is safety in numbers. Pooled funding creates quality assurance among funders who may not have the requisite knowledge to select suitable projects. It essentially creates a comfort zone for those who would otherwise hesitate to begin funding journalism. The hope however is that in the future more funders will become comfortable enough to begin funding journalism outside of the access point of a pooled fund.

However, this is not the only way in which funders can collaborate. In sharing knowledge and expertise across the European funding landscape, philanthropic organisations can work together to co-create new projects and grantmaking initiatives. In this sense, funders can co-fund projects independently but work side by side collaboratively. This kind of collaborative decision-making also accounts for the disparate geographic landscape of funding. For example, a country like the Netherlands is comparatively well-funded compared to other regions in Europe like Italy or Spain. Through collaborative processes, funders can contribute to journalistic diversity in landscapes and languages they might not be familiar with. It is a matter of shared trust. 

Looking forward

The first in-person meeting of the Journalism Funders Forum, since it found its new home with Philea, clearly showed that foundations are eager to connect more often. There is a drive to have funders communicate with one another in a casual setting, but also to facilitate communication between funders and potential grantees and partners. The repeated mentions of how difficult it is to communicate, match the need for better understanding between those who support journalism and those who create it. Both JFF and Philea are strengthened in their resolve to keep building connections between journalism funders in Europe and to advocate for the crucial role that philanthropy plays in safeguarding independent media.

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