(Case C-78/18)

Language of the case: Hungarian

Parties

Applicant: European Commission (represented by: V. Di Bucci, L. Malferrari and K. Talabér-Ritz, acting as Agents)

Defendant: Hungary

Form of order sought

The Commission claims that the Court of Justice should:

Declare that Hungary, by introducing discriminatorily, unnecessarily and without justification restrictions on foreign grants to Hungarian civil organisations through the a külföldről támogatott szervezetek átláthatóságáról szóló 2017. évi LXXVI. törvény (Law LXXVI of 2017, on the transparency of organisations that receive financial support from abroad), the provisions of which impose obligations of registration, declaration and transparency on certain categories of civil organisations―those that receive direct or indirect foreign financial support exceeding a specified amount ―and also make it possible for penalties to be imposed on organisations that do not fulfil such obligations, has failed to fulfil its obligations under Article 63 TFEU and Articles 7, 8 and 12 of the Charter of Fundamental Rights of the European Union.

Order Hungary to pay the costs.

Pleas in law and main arguments

Law LXXVI of 2017, on the transparency of organisations that receive financial support from abroad, imposes new obligations of registration, declaration, transparency and publicity on certain categories of civil organisations―those that receive direct or indirect foreign financial support exceeding a specified amount―and also makes it possible for penalties to be imposed on organisations that do not fulfil such obligations.

On 14 July 2017, the Commission initiated infringement proceedings against Hungary in relation to Law LXXVI of 2017.

Finding that the response provided by Hungary was unsatisfactory, the Commission moved to the next phase of infringement proceedings and, on 5 October 2017, sent Hungary a reasoned opinion.

Finding that the response to the reasoned opinion was not satisfactory either, the Commission decided to refer the case to Court of Justice for a declaration that Hungary had failed to fulfil its obligations under Article 63 TFEU and Articles 7, 8 and 12 of the Charter of Fundamental Rights of the European Union.

____________