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EU's top court rules that Hungary’s anti-NGO law unduly restricts fundamental rights

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On 18 June, the Court of Justice of the European Union (CJEU) recognized that Hungary’s 2017 law "on the Transparency of Organisations Supported from Abroad" (i.e. receiving foreign funds) unduly restricts the freedom of movement of capitals within the European Union (EU) and amounts to unjustified interference with fundamental rights, including respect for private and family life, protection of personal data and freedom of association, as well citizens’ right to participate in public life.

The Observatory for the Protection of Human Rights Defenders (FIDH-OMCT), which has long denounced this illegitimate administrative burden and obstruction to NGO work, welcomes this decision and hopes it will put an end to the Hungarian government’s constant attempts to delegitimise civil society organisations and impede their work.

In its decision (Case C-78/18, European Commission v. Hungary, Transparency of Associations), the CJEU recognised that by establishing by Law No. LXXVI of 2017 certain restrictions on donations received from abroad (including both non-EU and EU member states) by civil society organisations, Hungary has failed to comply with its obligations incumbent under Articles 63 of the Treaty on the Functioning of the European Union (“Free movement of capital”), and Articles 7, 8 and 12 of the Charter of Fundamental Rights of the European Union (respectively “Respect for private life,” “Protection of personal data” and “Freedom of association").

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“This decision is more than welcome! It strongly asserts that stigmatizing and intimidating NGOs receiving funding from abroad and obstructing their work is not accepted in the European Union,” said Marta Pardavi, Co-Chair of the Hungarian Helsinki Committee (HHC), member organisation of FIDH and of OMCT’s SOS-Torture Network. “Today’s ruling is a victory not only for Hungarian civil society organisations, who have campaigned fiercely against this law since its adoption, but for European civil society as a whole. It is a clear reaffirmation of the fundamental role played by civil society in a democratic State founded on the rule of law.”

The Law “on the Transparency of Organisations Supported from Abroad”, adopted in June 2017, introduced a new status called “organisation supported from abroad” for all Hungarian civil society organisations receiving foreign funding above 7,2 HUF (approximately €23,500) per year. These organizations must register as such with the Court and be labeled as “organizations supported from abroad” in all their publications as well as on the government’s free and publicly accessible e-platform on civil society organisations. Organizations also have to report the name of donors whose support exceeds 500,000 HUF (approximately €1,500) and the exact amount of the support. Failure to comply with these new obligations may result in heavy fines and dissolution of the organisation. In February 2018, the European Commission brought an action against Hungary before the CJEU for failure to fulfill its obligations under the Treaties with this law, resulting in today’s decision.

“Hungary should now withdraw this anti-NGO law and conform with the CJEU’s decision,” added OMCT Secretary General Gerald Staberock. “In recent years, Hungary has adopted other laws to silence civil society organisations, such as the Law ‘on the taxation of civil society organisations working with migrants and receiving foreign funding’. As a result, civic space is drastically shrinking in Hungary; we hope that today’s decision will help put an end to this alarming trend,” he concluded.

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European Commission

NextGenerationEU: European Commission disburses €231 million in pre-financing to Slovenia

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The European Commission has disbursed €231 million to Slovenia in pre-financing, equivalent to 13% of the country's grant allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Slovenia's recovery and resilience plan. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Slovenia's recovery and resilience plan.

The country is set to receive €2.5 billion in total, consisting of €1.8bn in grants and €705m in loans, over the lifetime of its plan. Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to member states under NextGenerationEU.

The RRF is at the heart of NextGenerationEU which will provide €800bn (in current prices) to support investments and reforms across member states. The Slovenian plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies. A press release is available online.

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Cyprus

NextGenerationEU: European Commission disburses €157 million in pre-financing to Cyprus

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The European Commission has disbursed €157 million to Cyprus in pre-financing, equivalent to 13% of the country's financial allocation under the Recovery and Resilience Facility (RRF). The pre-financing payment will help to kick-start the implementation of the crucial investment and reform measures outlined in Cyprus' recovery and resilience plan. The Commission will authorise further disbursements based on the implementation of the investments and reforms outlined in Cyprus' recovery and resilience plan.

The country is set to receive €1.2 billion in total over the lifetime of its plan, with €1 billion provided in grants and €200m in loans. Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of €80bn in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to member states under NextGenerationEU. Part of NextGenerationEU, the RRF will provide €723.8bn (in current prices) to support investments and reforms across member states.

The Cypriot plan is part of the unprecedented EU response to emerge stronger from the COVID-19 crisis, fostering the green and digital transitions and strengthening resilience and cohesion in our societies. A press release is available online.

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Belgium

EU Cohesion policy: Belgium, Germany, Spain and Italy receive €373 million to support health and social services, SMEs and social inclusion

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The Commission has granted €373 million to five European Social Fund (ESF) and European Regional Development Fund (ERDF) operational programmes (OPs) in Belgium, Germany, Spain and Italy to help the countries with coronavirus emergency response and repair in the framework of REACT-EU. In Belgium, the modification of the Wallonia OP will make available an additional €64.8m for the acquisition of medical equipment for health services and innovation.

The funds will support small and medium-sized businesses (SMEs) in developing e-commerce, cybersecurity, websites and online stores, as well as the regional green economy through energy efficiency, protection of the environment, development of smart cities and low-carbon public infrastructures. In Germany, in the Federal State of Hessen, €55.4m will support health-related research infrastructure, diagnostic capacity and innovation in universities and other research institutions as well as research, development and innovation investments in the fields of climate and sustainable development. This amendment will also provide support to SMEs and funds for start-ups through an investment fund.

In Sachsen-Anhalt, €75.7m will facilitate cooperation of SMEs and institutions in research, development and innovation, and provide investments and working capital for micro-enterprises affected by the coronavirus crisis. Moreover, the funds will allow investments in the energy efficiency of enterprises, support digital innovation in SMEs and acquiring digital equipment for schools and cultural institutions. In Italy, the national OP ‘Social Inclusion' will receive €90m to promote the social integration of people experiencing severe material deprivation, homelessness or extreme marginalisation, through ‘Housing First' services that combine the provision of immediate housing with enabling social and employment services.

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In Spain, €87m will be added to the ESF OP for Castilla y León to support the self-employed and workers who had their contracts suspended or reduced due to the crisis. The money will also help hard-hit companies avoid layoffs, especially in the tourism sector. Finally, the funds are needed to allow essential social services to continue in a safe way and to ensure educational continuity throughout the pandemic by hiring additional staff.

REACT-EU is part of NextGenerationEU and provides €50.6bn additional funding (in current prices) to Cohesion policy programmes over the course of 2021 and 2022. Measures focus on supporting labour market resilience, jobs, SMEs and low-income families, as well as setting future-proof foundations for the green and digital transitions and a sustainable socio-economic recovery.

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