Rule of Law, Free Speech, and free speech, and criminalizing the activities of Individual Rights Disappearing in non-governmental organizations (NGOs). Capturing a Once-Independent Judiciary In April 2018, Prime Minister Viktor Orbán and his nationalist party won a two-thirds majority Since coming to power, Fidesz has repeatedly in the Hungarian parliament after garnering undermined rule of law by changing the rules and roughly 50 percent of the popular vote. The personnel governing judicial appointments to pack election initiated Orbán’s third consecutive term the country’s Constitutional Court with supporters, as prime minister, and followed extensive and by limiting the Court’s ability to review the changes to the Hungarian constitution and constitutionality of laws. Recent amendments to electoral laws that election experts say provide his Hungary’s constitution have established an party with significant undue political advantage.1 entirely new judicial body—an Administrative High Given a political landscape in which Fidesz has Court—tasked with hearing all cases related to abolished many governmental checks and civil liberties, such as freedom of assembly and balances and largely captured state-run and electoral issues, asylum cases, and all cases private media, Orbán faced no competitive related to taxation and procurement.4 Notably, tax opposition. Instead, in a campaign marked by and procurement-related irregularities have been state-funded antisemitic and racist advertising, he highlighted repeatedly by a dwindling number of based his platform on opposition to migrants and independent Hungarian media outlets as the refugees (of which Hungary accepts next to zero), source of millions of dollars in suspect deals non-governmental watchdogs, and the Hungarian- involving Orbán’s family and friends. Several such American financier .2 During the deals have involved Russian governmental election, Orbán declared that “after the elections actors.5 we will take revenge—moral, political, and legal Strangling Independent Media revenge” against real and perceived enemies of the Hungarian state.3 Following the election, the Since Orbán’s rise to power, his close associates Fidesz government has passed new laws have purchased a growing number of independent curtailing judicial independence, further targeting Hungarian media outlets, either closing them outright or significantly altering their content in

1 “HUNGARY PARLIAMENTARY ELECTIONS 6 April 2014, https://www.dw.com/en/hungarys-viktor-orban-targets-critics- OSCE/ODIHR Limited Election Observation Mission Final with-soros-mercenaries-blacklist/a-43381963. Report” OSCE: Office for Democratic Institutions and Human 4 “Attacking the Last Line of Defense: Judicial Independence in Rights, Warsaw, July 11, 2014, Hungary in Jeopardy,” Hungarian Helsinki Committee, June https://www.osce.org/odihr/elections/hungary/121098?downloa 15, 2018, https://www.helsinki.hu/wp- d=true content/uploads/Attacking-the-Last-Line-of-Defense- 2 Disclosure: Human Rights First receives funding from roughly June2018.pdf 40 foundations, including Foundations, which 5 Daniel Hegedus, The Kremlin’s Influence in Hungary, DGAP was founded by George Soros. Kompakt 8, February 2016, https://dgap.org/en/think- 3 Keno Verseck, "Hungary's Viktor Orban Targets Critics with tank/publications/dgapanalyse-compact/kremlins-influence- 'Soros Mercenaries' Blacklist | DW | 13.04.2018," DW.com, hungary. April 13, 2018, accessed October 12, 2018,

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support of the government. Others have been put media.7 The NOFO was quietly cancelled, under significant pressure through governmental following a policy reversal, in July 2018.8 manipulation of the advertising market. The In early August, HírTV, Hungary’s first television precipitously declining state of press freedom in station dedicated to news programming, was sold Hungary led U.S. Chargé d’Affaires David to an Orbán ally.9 Its programs were immediately Kostelancik, a career foreign service officer, to cancelled and replaced by a video of an Orbán devote an entire speech to the issue in October speech running on a loop. In September, 2017. In his remarks, Kostelancik noted that Index.hu, Hungary’s largest independent online “Government allies have steadily acquired control news outlet, was bought by a ruling party and influence over the media market,” and had member, raising significant concerns that it too will completed the acquisition of all independent soon experience either a directed editorial change regional newspapers in the country, an erstwhile or a sudden closure.10 In October, in response to key source of credible information. Kostelancik online outlet Atlatszo’s investigations of corruption went on to decry government-aligned media within Fidesz, state-aligned media branded the outlets labeling individual independent journalists, outlet “pro-migration” and aligned with unspecified including American citizens, as “threats” to foreign intelligence agencies.11 Hungary.6 Criminalizing NGO Activity—Including Following Kostelancik’s speech, the U.S. State Free Speech Department, through the Bureau of Democracy, Human Rights, and Labor (DRL), announced a On July 1, a new law regulating NGO activity went $700,000 Notice of Funding Opportunity (NOFO) into effect criminalizing the act of ‘facilitating illegal to "support media outlets operating outside the immigration.’12 Under the new law, given the capital in Hungary to produce fact-based politically-charged title of “STOP Soros,” any reporting," and otherwise promote independent action that is deemed by the government to be helping illegal migrants achieve legal status or

6 U.S. Embassy , ""Freedom of the Press: Enduring accessed October 12, 2018, Values in a Dynamic Media Environment"," U.S. Embassy in https://www.reuters.com/article/us-hungary-orban- Hungary, October 17, 2017, accessed October 12, 2018, media/orban-loyalists-take-control-of-prominent-hungarian- https://hu.usembassy.gov/freedom-press-enduring-values- news-channel-idUSKBN1KM4VT. dynamic-media-environment/. 10 Staff, "Leading Online Daily Index.hu Sold to Foundation 7 "Bureau of Democracy, Human Rights and Labor (DRL) Linked to Lajos Simicska," The Budapest Beacon, April 21, Notice of Funding Opportunity (NOFO): Supporting Objective 2017, , accessed October 12, 2018, Media in Hungary," U.S. Department of State, November 07, https://budapestbeacon.com/leading-online-daily-index-hu- 2017, accessed October 12, 2018, sold-foundation-linked-lajos-simicska/. https://www.state.gov/j/drl/p/previouscalls/275396.htm. 11 "How Orban's Media Empire Is Smearing Atlatszo," 8 Marton Dunai, "Gloom in the Newsroom as Hungary's VSQUARE.ORG, October 3, 2018, , accessed October 12, Independent Media Recedes," , September 25, 2018, , 2018, https://vsquare.org/how-orbans-media-empire-is- accessed October 12, 2018, smearing-atlatszo/. https://www.reuters.com/article/us-hungary-orban-media- 12 The Hungarian Government’s Proposal on the Stop Soros insight/gloom-in-the-newsroom-as-hungarys-independent- Legislative Package, Hungarian Helsinki Committee, (unofficial media-recedes-idUSKCN1M40SP. translation of the law) https://www.helsinki.hu/wp- 9 Marton Dunai, "Orban Loyalists Take Control of Prominent content/uploads/STOP-SOROS-LEGISLATIVE-PACKAGE- Hungarian News Channel," Reuters, August 01, 2018, PROPOSAL.pdf.

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otherwise supporting individuals considered to In July, the Hungarian parliament again altered have entered the country illegally could result in the country’s constitution and passed a new law criminal prosecution and up to a year’s further limiting freedom of assembly. In effect imprisonment. Criminal actions could therefore since October, the new provisions prohibit any include offering immigrants food or providing gathering of at least two people in the public leaflets with information on legal resources to sphere for the purpose of “discussion of public asylum-seekers.13 affairs.” 16 These provisions make it illegal to protest in a way that violates ‘the private and Additionally, the parliament passed a law levying family life of others and their home,’ and were a 25 percent tax on any activity or organization intended to criminalize any protest near the house that “directly or indirectly supports immigration.”14 or dwelling of any Fidesz member. The law could This law will require that NGOs pay a heavy tax if be used to criminalize nearly all protests. Rallies they assist immigrants, even in very minor ways. may also be banned if they are deemed to “violate Passage of the law led to the closing of the Open the dignity of the Hungarian nation,” which gives Learning Initiative at Hungary’s Central European the state an explicitly political justification to University, the country’s U.S.-accredited, leading suppress speech. Any appeal of a banned rally post-graduate institution, which the Orbán would fall under the jurisdiction of the new highly- government has sought to shutter. The program politicized Administrative High Court.17 offered free, non-degree courses for asylum- seekers and refugees.15 Opening the Door to Vladimir Putin

Both laws were passed by the Hungarian Prime Minister Orbán’s continued closeness with parliament over objections raised by the Council the Kremlin, despite warnings from the U.S of Europe’s Venice Commission. As a result of the government, remains a political and security risk. passage of these laws, the European Commission Orbán appears to be emulating the Russian initiated infringement proceedings in the European government’s approach to governance by making Court of Justice in July—based on Hungary’s use of what many analysts consider corrupt violations of EU law related to its asylum policy— procurement deals. More concerning, he is and issued a notice of concern regarding the actively collaborating with Russia in the form of STOP Soros legislation. corrupt business initiatives such as PAKS II, Curtailing Freedom to Assemble disinformation cooperation such as the repackaging of Russian media narratives, and

13 Hungary to criminalise migrant helpers in crackdown, BBC, https://www.hrw.org/news/2018/08/29/university-program-first- May 29, 2018, https://www.bbc.com/news/world-europe- victim-hungary-anti-immigration-tax. 44288242. 16 "Hungary's New Law Restricting Freedom of Assembly," 14 The Hungarian Government’s Proposal on the Stop Soros Hungarian Spectrum, October 02, 2018, , accessed October Legislative Package, Hungarian Helsinki Committee, (unofficial 12, 2018, http://hungarianspectrum.org/2018/10/02/hungarys- translation of the law) https://www.helsinki.hu/wp- new-law-restricting-freedom-of-assembly/. content/uploads/STOP-SOROS-LEGISLATIVE-PACKAGE- 17 Summary of the Hungarian Civil Liberties Union’s Analysis of PROPOSAL.pdf the New Bill on the Right to Assembly, HCLU site, July 2018, 15 Lydia Gall, "University Program First Victim of Hungary Anti- https://hclu.hu/en/articles/summary-of-the-hungarian-civil- Immigration Tax," , August 30, 2018, liberties-unions-analysis-of-the-new-bill-on-the-right-to- accessed October 12, 2018, assembly.

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support of Russia’s foreign policy through the corruption, including funds to help them blocking of Ukrainian integration into NATO and provide for their own safety. the EU.18 ◼ Request democracy and governance funding Europe’s Response for support to NGOs and watchdog organizations in Hungary, to allow them to On September 12, the European Parliament voted engage with the Hungarian public and to invoke Article 7 of the Lisbon Treaty against showcase their work. The funds request and Hungary noting that damage to the rule of law, future solicitation should recognize that democracy, and human rights had become a Hungary’s anti-democratic slide will only be serious threat to EU fundamental principles. The combated when citizens of Hungary see that Article 7 process requires that Hungary make democratic institutions, such as civil society, significant changes to bring its laws and policies work on their behalf. The best way to into line with EU principles, or face possible demonstrate this is for civil society to engage sanctions such as suspension of its voting rights with the Hungarian public. in the EU Council. However, the process will require the EU to forcefully negotiate with ◼ Apply the Global Magnitsky Act to Hungarian Hungary, and it may be thwarted if Poland or officials involved in corruption, building upon another EU member votes against. visa bans issued against suspected corrupt actors in 2014. Failure of the to Counter Hungary’s Disappearing Rule of Law ◼ Urge EU leaders to use budget discussions to will have Strategic Costs give weight to how Hungary and other European countries protect civil society and The U.S. State Department should: maintain the rule of law, including the ◼ Publicly defend the right of Hungarian NGOs independence of the judiciary. to accept international funding and to operate ◼ Reject head of state-level bilateral meetings, free from restriction so they can do their work. in Washington D.C. or elsewhere, until Prime ◼ Open a new grant solicitation for independent Minister Orbán stops his attacks on media in Hungary, to provide support to governmental checks and balances, and civil outlets that investigate stories related to society. public accountability, transparency, and

18 Drew Hinshaw and Marcus Walker, "In Orban's Hungary, a https://www.wsj.com/articles/in-orbans-hungary-a-glimpse-of- Glimpse of Europe's Demise," , August europes-demise-1533829885. 09, 2018, , accessed October 12, 2018,

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