The European Commission said on Thursday the Hungarian “sovereignty law” that entered into force in February violated EU rules on privacy, freedom of expression and freedom of association. People and organisations deemed a threat to national sovereignty in Hungary — a loosely defined concept — and who are accused of using foreign funding to influence political processes are facing fines and prison terms.

The European Commission said on Thursday it was suing Hungary over a law that imposes jail terms for groups that accept foreign funds for political causes. The Commission opened an infringement procedure in February over the Hungarian law on "protecting national sovereignty,

The EU said Thursday it was referring Hungary to the European Court of Justice over laws passed by Budapest to curb foreign influence in the country, which critics say aim to silence government opponents.