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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.