Ref.

Ares(2021)2353048 - 06/04/2021

EUROPEAN COMMISSION

Ursula von der Leyen

The President

Brussels, O 8 AVR. 2021

Ares (2020) 4289825

Dear Honourable Member,

I would like to thank you for your letter, in which you raised concerns regarding the situation
ofthe media in Hungary.

Media freedom is vital to hold governments accountable and to monitor democratic

processes. The Commission adopted the 2020 rule of law report, as part of the new
European Rule of Law Mechanism, on 30 September 2020. The country chapter on
Hungary analysed the issues raised in your letter and assessed that the plurality in the
media market is at high risk. In particular, it highlighted that media concentration via
the creation of the Central European Press and Media Foundation (KESMA)
conglomerate has increased risks to media pluralism. The chapter also refers to the
concerns raised by stakeholders and civil society in relation to independent media outlets
such as Index.hu, pointing to the possible risk of economic takeover.

The chapter also found that the independence and effectiveness of the media regulator
(Media Council) is at risk, that transparency of media ownership is not fully guaranteed
and that state advertising allows the government to exert indirect political influence over
the media. In this respect, the Commission is also closely following the transposition of
the revised Audiovisual Media Services Directive, which includes provisions that
strengthen legal safeguards in several relevant areas, in particular as regards the
independence of media regulators and the transparency of media ownership.

The Commission hopes that the findings of the Rule of Law Report will be taken up to
feed debates with the other institutions, Member States and stakeholders on issues
related to the rule of law, including on media pluralism, and that such debates would
also generate useful solutions to the problems identified.

Dr István Újhelyi, MEP

European Parliament
Rue Wiertz, 60
1047 BRUSSELS

E-mail: istvan. uihelviCcveuroparl.europa.eu

Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË - Tel. +32 2299 11 11

 Moreover, the Commission supports media freedom and pluralism through a variety of
initiatives within the scope of its competences. It co-finances several projects1 —
representing nearly EUR 7 million - aimed at mapping threats and risks to media
freedom and pluralism, defending journalists under threat, including against abusive
lawsuits, and supporting collaborative journalism, cooperation and exchange of best
practices. In particular, the media freedom rapid response project offers legal and
practical support to media actors under threat, and can provide temporary shelter when
needed. The Commission also co-funds the Media Pluralism Monitor, a tool implemented
by the Centre for Media Pluralism and Media Freedom and designed to identify potential
risks to media pluralism in the Member States. The Commission has proposed to earmark
stable funding for projects in the fields of media freedom, media pluralism and media
literacy via the cross-sectoral strand of the Creative Europe Programme 2021-2027 in
the forthcoming multiannual financial framework.

In addition to the current support measures, the Commission adopted a European

Democracy Action Plan on 3 December2 2020. Its purpose is to reinforce the resilience of
our democracies, countering disinformation as well as supporting free and independent
media. Recognising the essential role of media for our democracies, the action plan will
aim to improve the working environment ofjournalists and their protection within the EU.
The Commission has already included an initiative against abusive litigation targeting
journalists and rights defenders in its work programme for 2021.

The Commission has also adopted a dedicated Media and Audiovisual Action Plan3 to
support the media sector and its digital transformation, and support media pluralism.
The Action Plan was adopted on 3 December 2020, it includes specific actions to support
the news media sector in innovative ways.

I can assure you that the Commission takes your inquiry very seriously and will continue
monitoring the situation of media freedom and pluralism in Hungary very closely and
will take appropriate action, wherever possible and necessary.

Yours faithfully,

cśa.„ -οΩ.
Ursula von der Leyen

1 https://ec. europa, eu/disital-sinsle-market/en/news/eu-funded-proiects-support-media-freedom-and-

pluralism-eu

2 https://ec. europa, eu/commission/presscorner/detail/en/ip 20 225O

3 https://ec.europa.eu/commission/presscorner/detail/en/ip 20 2239