The Hungarian law introduces new obligations for certain categories of NGOs receiving annual foreign funding above HUF7.2 million (approx. € 24,000) to register and label themselves in all their publications, websites and press material as "organisations supported from abroad", and to report specific information about the funding they receive from abroad to the Hungarian authorities. These organisations face sanctions if they fail to comply with the new reporting and transparency obligations.

First Vice-President Frans Timmermans said: “Civil society is the very fabric of our democratic societies and therefore should not be unduly restricted in its work. We have studied the new law on NGOs carefully and have come to the conclusion that it does not comply with EU law. We expect that the Hungarian government will engage in a dialogue to resolve this issue as soon as possible. We await a reaction from the Hungarian authorities within a month.”

• Press release | 13/07/2017 | INFRINGEMENTS - Hungary: Commission launches infringement procedure for law on foreign-funded NGOs