A cross-party alliance of European lawmakers is calling for the complete suspension of EU funds to Hungary, accusing Viktor Orbán’s government of orchestrating a systematic assault on democratic values and the rule of law.
In a hard-hitting letter sent to the European Commission, 26 MEPs have demanded that Brussels finally cut the purse strings unless Budapest reverses what they describe as a deepening authoritarian turn.
The letter — spearheaded by Green MEP Daniel Freund and obtained by The Financial Times — signals a sharp escalation in the European Parliament’s long-running standoff with Orbán’s regime. It accuses Hungary of “continuous violations” of EU laws, targeting judicial independence, the free press, NGOs, and minority rights.
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“We urge the European Commission to increase pressure on Viktor Orbán’s government to cease violating EU values and EU laws by immediately suspending all EU funding for Hungary,” the MEPs write.
The lawmakers’ demands follow a flurry of legislation in Budapest that critics say is designed to consolidate executive power while silencing dissent and civil society.
Chief among their concerns is a draft law debated in the Hungarian parliament this week, which would establish a so-called “Sovereignty Protection Office” — an Orwellian body with powers to investigate and blacklist NGOs and media outlets that receive foreign funding and are deemed to threaten Hungarian sovereignty.
Under the bill, which has been endorsed by Orbán’s ruling Fidesz party, organisations could face intrusive investigations and hefty fines, with minimal judicial oversight. Detractors have warned that the law would give the government carte blanche to label virtually any critical voice as “foreign-influenced” or “unpatriotic.”
Freund, who has long been a vocal critic of Hungary’s democratic backsliding, said the law represents “another step towards a Putin-style regime” in the heart of the European Union.
“This is not simply about domestic governance. It’s about whether a country that openly rejects European values can continue to benefit from European taxpayers’ money,” he said.
The letter also denounces recent moves by the Hungarian authorities to ban the Budapest Pride march, describing it as an attack on minority rights and freedom of assembly. It is the first time in over a decade that the event — a symbol of liberal resistance to Orbán’s illiberal rule — has been denied a permit by municipal authorities.
Further alarm has been sparked by new legislation enabling the revocation of Hungarian citizenship from dual nationals considered a threat to the state. Civil rights groups have likened the law to Soviet-era practices of state exile and say it risks being applied arbitrarily to dissidents or critics living abroad.
MEPs say the combined effect of these measures amounts to an “alarming regression” on fundamental rights and democratic norms. “Given these troubling developments, we firmly believe the EU must adjust its response,” the letter states. “We therefore consider a freezing of all funds proportionate to the risk posed to the union’s financial interests.”
Frustration has been mounting in the European Parliament over what many see as the Commission’s failure to hold Orbán to account. Although Brussels has partially withheld billions of euros from Hungary under its “conditionality mechanism” — linking EU funds to respect for rule of law — critics argue that the measures have been half-hearted and easily circumvented by Budapest.
Despite repeated calls for tougher sanctions, Orbán has continued to stonewall on judicial reforms and ramp up rhetoric against the EU, while leveraging Hungary’s veto power in the Council to extract concessions on unrelated files.
“What we’re witnessing is not just foot-dragging but open contempt for the European project,” said former Dutch MEP Sophie in ‘t Veld, one of the letter’s co-signatories. “If the EU continues to subsidise authoritarianism within its own borders, it risks becoming complicit in the erosion of democracy.”
The Orbán paradox
The political paradox remains that Hungary, a net recipient of EU funds, has used that very cash to entrench a system increasingly at odds with the democratic standards Brussels claims to uphold. Billions in cohesion funds have flowed into Hungary over the past decade, while domestic media, universities and civil society groups have been either shuttered or co-opted by pro-government allies.
Critics argue that Orbán has perfected the art of playing the system — exploiting the Union’s reluctance to confront internal dissent while reaping financial benefits from its largesse.
So far, the Commission has only partially frozen funds earmarked for Hungary, citing progress — albeit limited — on anti-corruption reforms and judicial appointments. But for Freund and his allies, the time for patience has long expired.
“There is no more room for appeasement,” said Freund. “This is a question of credibility. Either the EU enforces its rules, or it admits that its values are negotiable.”
Predictably, Budapest has dismissed the letter as ideological posturing. Government spokesperson Zoltán Kovács accused the signatories of waging a “witch hunt” and meddling in Hungary’s internal affairs.
“Hungary is a sovereign nation that will not bow to political blackmail from Brussels,” Kovács said in a statement. “We defend our Constitution, our traditions, and our people’s will against foreign interference.”
But with support growing in Strasbourg for a tougher line, and Hungary’s democratic credentials increasingly in question, Orbán may soon find the EU’s patience — and its purse — running out.
