The law on foreign-supported NGOs was adopted by the Hungarian parliament in April 2017, but the Court of Justice of the European Union – although it recognizes the purpose of the law, i.e. the greater transparency of NGOs – last June deemed its means to be contrary to EU law. In view of these, the government made a proposal to create a new regulation in line with European Union law at the same time as repealing the 2017 law.
Justice Minister Judit Varga made it known that this proposal does not impose a greater burden on civil organizations than before, and does not ask for more than what was previously expected: transparent operation.
The Court of Justice of the European Union did not have a problem with the goal of making the financing transparent, and the body even confirmed this, they only requested an amendment with regard to the instruments. According to the proposal on the new regulation, the State Audit Office must publish an annual summary report on all associations and foundations whose balance sheet total for the current year reaches twenty million forints, in a manner specified in a separate law. With regard to civil organizations, the preparation and publication of reports is already in the LXXVI of 2017. it was a requirement that had existed for decades even before the law, which Hungarian law has continuously imposed since 1992.
Although civil organizations are not currently obliged to submit their reports electronically, in accordance with the requirements of the time, this option is also available to them, which many organizations have used so far. The draft law also defines this practice as an obligation above the balance sheet total of HUF five million.
Support from an unknown foreign source can be a suitable tool in the hands of foreign interest groups to enforce their own interests instead of Hungarian community goals, as it can also be aimed at making specific political or economic decisions and at the operation of the state's democratic institutional system. These may pose a risk to Hungary's national security and sovereignty. However, according to the Hungarian point of view, illegitimate non-governmental organizations with an opaque background and not elected by anyone cannot determine Hungarian government policy.
It is important to emphasize that in the case of non-governmental organizations, the audit only means an investigation of legality, the State Audit Office can only investigate the legality of the management of non-governmental organizations carrying out activities capable of influencing public life.
The provisions contained in the proposed regulation are not suitable for influencing the operation of NGOs, but they help supporters and other citizens who want to find out and monitor the operation of NGOs, and thus provide transparency for both members and other members of society. , which can ultimately contribute to strengthening trust in civil organizations.
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