Legal Victory for Central European University Is Too Little, Too Late

The Hungarian government received another blow from a European institution on Tuesday, when the Grand Chamber of the Court of Justice of the EU ruled that the so-called ‘lex CEU’ – legislation drawn up with the apparent aim of forcing out the prestigious Central European University from the county – was incompatible with EU law.

The decision of the Luxembourg-based court, the EU’s highest, followed widespread criticism from the European Commission in its Rule of Law Report on Hungary issued on September 30, in which it said “the weakening of independent institutions and the increased pressure on civil society” by the government of Prime Minister Viktor Orban is further harming checks and balances in the country.

Today’s judgement did not come out of the blue. In March this year, the Advocate General of the Court, Juliane Kokott, issued her opinion that the Hungarian law did not comply with either international or EU law.

As usual, the court followed in her footsteps. In its final judgment, the Grand Chamber found that the Hungarian law was contrary to the Charter of Fundamental Rights, relating to academic freedom, the freedom to establish higher education institutions and the freedom to conduct business. It was also contrary to GATS and WTO regulations.

According to the 2017 amendment of the Hungarian Law on Higher Education, to give ‘lex CEU’ its proper name, higher education institutions from states outside the European Economic Area (EEA) could continue their activities in Hungary only if an international treaty existed between Hungary and their state of origin. In addition, all foreign higher education institutions offering higher education in Hungary would be required to offer such education in their state of origin.

The legislation drawn up by and pushed through by the ruling party was clearly designed to target the Central European University – founded by US Hungarian-born financier George Soros, a bogeyman of Orban’s Fidesz – which was an accredited American university that did not offer any education outside of Hungary. The law was passed in an accelerated procedure, making it impossible for the university to adjust to the new requirements.

The initial reaction from the Hungarian government was a mix of the defiant, grudging, disrespectful and obtuse.

“The government finds double standards unacceptable. All universities in Hungary must comply with the law equally. It is not possible to create a law that puts Soros University in a more advantageous position than Hungarian universities,” Justice Minister Judit Varga posted on Facebook, ignoring the fact that it was her government that changed the law to make the Central European University non-compliant and put it at a disadvantage.

“As always, Hungary will enforce the judgment of the European Court of Justice in the interest of the Hungarian people. The relevant Hungarian law affects dozens of foreign higher education institutions operating in Hungary, but most of them had no problem complying with this legislation. The proper function of higher education institutions is ultimately a confidence in the education system of a country, a guarantee of the reputation of the higher education system, and the diploma issued as a result is the embodiment of this. No mailbox-universities needed!”

George Soros, founder and chair of the Open Society Foundations, said: “The ruling by the European Court of Justice that Hungary is in violation of European law is a victory for the fundamental values of the European Union. The decision comes too late for CEU. We cannot return to Hungary because its prevailing laws don’t meet the requirements of academic freedom. The Hungarian government continues to trample EU law, with the latest victim being the world-renowned University of Theatre and Arts (SZFE). The EU is currently debating how to ensure that its funds are used in accordance with the rule-of-law. I call on the EU to make Hungary a test case.”

Indeed, the Central European University has already set up a new campus in Vienna and moved most of its activities to the Austrian capital. Currently, only courses launched before 2019 are held at the Budapest campus; all new students are admitted to the Vienna-based institution.

I think the government wanted to demonstrate force with the lex CEU, to show that they meant seriously their campaign against George Soros and that it would have practical consequences.

– Adam Vermes, political analyst for Meltanyossag Intezet

The effective expulsion of the Central European University provoked international uproar, ties with the US were harmed and even the European People’s Party, the umbrella organisation in the European Parliament to which Fidesz belongs, criticised the move.

Manfred Weber, the EPP’s lead candidate for Commission president at the time called it a red line, and personally got involved in trying to find a solution, bringing on board Munich’s Technical University as a potential European partner for the Central European University. But the Hungarian government refused to change course.

The expulsion of Hungary’s best university – in international rankings, the Central European University tops all national higher education institutions – caused street protests in Budapest and abroad in 2017, while political analysts pondered the real motives of the government, other than wanting to exert full financial and personal control over all higher education in Hungary.

“I think the government wanted to demonstrate force with the lex CEU, to show that they meant seriously their campaign against George Soros and that it would have practical consequences. Fidesz also managed to rally its voters by building up yet another enemy, this time CEU, an institution which was mostly unknown for its core voters, especially in the countryside,” Adam Vermes, a political analyst at Meltanyossag Intezet (Centre for Fair Political Analysis), told BIRN.

Vermes is sceptical about the impact of today’s decision. “CEU may have achieved a legal victory but, politically, it is the Hungarian government which won, because they have effectively driven the university out of Hungary. There is a very slim chance that the process can be turned back,” he said.

Guy Verhofstadt, an MEP, agreed, saying Central European University “has been chased out of the country for good and academic freedom is all but gone from Hungary.”

“This needs a political response at the highest level,” he tweeted.

Central European University president Michael Ignatieff will hold an international press conference later this afternoon to comment on the court’s decision.