The European Commission on Thursday called on Hungary to abide by a ruling from the EU's top court that its curbs on foreign-funded NGOs violate European law.

Hungary's 2017 law, an initiative of Prime Minister Viktor Orban's nationalist government, requires certain categories of NGOs that receive more than 24,000 euros ($29,000) of foreign funding per year to register as such and publicly list their donors.

According to critics, the law in particular targeted Hungarian-born US billionaire George Soros, whose Open Society Foundation supports human rights groups that have been critical of Orban.

Hungary argues the law is needed for transparency.

The European Court of Justice, based in Luxembourg, ruled in June 2020 that the restrictions notably violated the freedom of movement of capital and freedom of association.

The European Union's executive arm said in a statement on Thursday that it had sent Hungary a letter of formal notice of failure to comply with the judgement.

It noted that Hungary had not repealed the law and gave the country two months to respond, saying it could propose financial sanctions to the court if it did not.

The issue is among a list of many disputes between EU authorities and Budapest over topics including the perceived weakening of the rule of law and Orban's tough line against immigration.

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