European NGOs and media outlets suffered significant losses in funding after the Trump administration cut more than 80 per cent of US Agency for International Development (USAID) programmes, which were widely described as promoting a progressive globalist agenda aimed at destabilizing conservative governments around the world. However, Brussels has shown no intention of letting go of these organizations, as they have served the European Commission’s interests just as effectively as they served Washington’s.
According to a proposed legal framework adopted by the Commission in 2023, the EU would establish European Cross-Border Associations (ECBAs) under the guise of promoting ‘more effective cooperation and engagement’ among non-profit organizations operating across multiple member states. Under this proposal, once established, ECBAs would be automatically recognized across all EU countries, removing the need for multiple national registrations. The stated aim is to ‘provide standardized regulations regarding the movement and operations of these associations within the EU.’
EU Directive Empowers Foreign Influence
‘The proposed directive seeks to enhance the functioning of the internal market for non-profit associations by ensuring they can effectively exercise their rights related to freedom of establishment, free movement of capital, provision and receipt of services, and movement of goods within the EU,’ the text reads. The directive is supported by most progressive and mainstream political groups in the European Parliament, including Renew, the Socialists and Democrats (S&D), and the European People’s Party (EPP).
What this really means, however, is that Brussels is once again seeking to overstep its mandate by imposing a legal framework on member states—making it virtually impossible for them to protect their sovereignty against potential foreign influence from foreign-funded NGOs. As the Hungarian Sovereignty Protection Office explained, the proposed legislation would grant privileged legal status to organizations that are not rooted in the local civic fabric but are instead driven by foreign agendas and financed by international actors.
The Office’s report highlights Hungary’s efforts in recent years—including through the establishment of the office itself in 2024—to curb foreign interference. These efforts intensified after a secret service investigation revealed that millions of dollars had been channelled to the Hungarian opposition and its affiliated NGOs and media during the 2022 parliamentary election campaign, via a Washington-based NGO, Action for Democracy. The NGO also maintained extensive ties with USAID.
Hungary’s push to defend its sovereignty gained further momentum following the USAID scandal, with proposed amendments to the Fundamental Law—including the possibility of expelling Hungarians with dual citizenship if their actions threaten national sovereignty, public order, territorial integrity, or security. Explaining the proposal, the parliamentary leader of the governing party Fidesz stated that the measure could be applied to NGOs and journalists who serve foreign interests.
Prime Minister Viktor Orbán also appointed MEP András László as government commissioner responsible for investigating the flow of USAID funding into Hungary. László recently travelled to Washington, where he met Peter Marocco, who served as acting head of USAID for six weeks, from February to March. Following their meeting, Marocco announced that all USAID contracts in Hungary had been terminated. László recently stated that the investigation into the US grants could result in legal consequences.
Brussels Kills Sovereignty
The proposed EU directive would significantly hinder the Hungarian government’s ability to continue these efforts. As the Sovereignty Protection Office warned, Hungarian authorities would be forced to recognize and even fund entities that openly act against national interests. ‘They would be free to move money, relocate their headquarters, and launch operations inside Hungary, all while being protected from meaningful scrutiny. The law would also severely restrict our ability to shut them down—no matter how clearly they undermine Hungarian democratic decision-making.’
Orbán warne, at the time the USAID scandal broke that these ‘operations’ had two centres—one in Washington, the other in Brussels. While the American arm has been weakened following the re-election of Donald Trump, the European one is growing stronger and is doing everything it can to preserve its influence in member states.
It is therefore unsurprising that NGOs with significant lobbying power have ramped up pressure on member states to adopt the ECBA framework before the November 2025 deadline for implementing the Council of the European Union’s recommendation on developing social economy framework conditions. As of April 2025, the Council’s Legal Service has issued an opinion on the legal basis of the directive, and discussions are ongoing within the Council’s Working Party on Company Law.
Hungary, however, will not back down. As emphasized by the Sovereignty Protection Office, the country will resist this directive through every available political and legal means. Hungary stands for national sovereignty, democratic legitimacy, and the right of its people to chart their own path—free from interference by foreign-funded networks operating under the cover of EU institutions.
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