EU begins legal action against Hungary over anti-LGBTQ law

[BRUSSELS] The European Commission will begin legal proceedings against Hungary over a controversial law curtailing LGBTQ content, in the latest spat between Brussels and Prime Minister Viktor Orban's government.

"The Hungarian Bill is a shame," Commission President Ursula Von der Leyen told reporters in Brussels on Wednesday. "I will use all the powers of the commission to ensure that the rights of all EU citizens are guaranteed, whoever you are and wherever you live."

Hungary's Parliament approved last week legislation outlawing content for children that can be deemed to "promote homosexuality." The Bill, which pairs homosexuality with pedophilia, builds on legislation adopted last year that effectively bans adoption by same-sex partners and enshrines in the constitution that marriage is only between a man and a woman.

There has been a furious reaction in Western European capitals. On Tuesday, 13 EU governments said it "represents a flagrant form of discrimination based on sexual orientation, gender identity and expression." Mr Orban insisted that the new law doesn't undermine LGBTQ rights. "In communist Hungary, homosexual people were persecuted," Mr Orban said in an interview with German news agency DPA published Wednesday. "Today the state not only guarantees the rights of homosexuals but actively protects them." This is just the start of long-drawn legal proceedings that will have no immediate impact on Hungary, but the move adds to signs that the EU's executive arm plans to toughen its stance when assessing whether Hungary and Poland have descended into authoritarianism.

Both badly need EU money, especially in light of the pandemic.

Later this year, the EU's executive arm may propose the freezing of payments from the bloc's jointly financed stimulus programme and common budget toward the two countries governed by hard right populist parties.

The proposal, which would need the backing of a weighted majority of European governments, could mean that billions of euros in EU funds could be withheld over the lack of democratic checks and balances to ensure they will not be misappropriated.

To protest the law, the city of Munich had planned to illuminate its stadium in rainbow colours when Germany meets Hungary for a soccer match in the Euro 2020 tournament later on Wednesday.

While European soccer body Uefa denied the request, Munich authorities said they'll decorate city hall in rainbow flags and light up a wind turbine close to the arena in the colours of the pride flag. Stadiums in several other German cities will also be illuminated in solidarity with the LGBTQ movement.

Mr Orban, who had planned to attend the game in person, has since cancelled his trip to Munich, according to a person familiar with the planning.

BLOOMBERG