EU is getting ready to introduce its own foreign agents law, all you need to know

The European Union is reportedly drafting a law aimed at tightening the reins on foreign influence within the bloc by requiring non-governmental organizations, consultancies, and academic institutions to disclose any non-EU funding they receive. Sources familiar with the matter confirmed to POLITICO that the legislation, which is still in its nascent stages, is reminiscent of comparable laws already in place in Australia and the United States. Notably, the U.S. Foreign Agents Registration Act, which mandates that lobbyists working on behalf of foreign governments register with the federal government, has been in effect since 1938.

According to an anonymous European Commission official familiar with the early stages of the EU's proposed law, it is unlikely to impose requirements on individuals. Instead, the legislation would mandate that both commercial and nonprofit organizations operating within the bloc disclose any non-EU funding received for activities such as funding academic research. The law is expected to be finalized in late May.

Why did the need for the proposed law arise?

In recent years, Europe has been contending with various foreign influence efforts, ranging from Russian hack-and-leak schemes intended to sway election results, to Chinese funding for academic institutions with the aim of shaping discourse on human rights, to the recent Qatargate corruption scandal, which has sent shockwaves through the European Parliament.

During her State of the Union address last September, Commission President Ursula von der Leyen unveiled a "defense of democracy" plan, which included the introduction of a foreign influence bill overseen by Commission Vice President for Justice Věra Jourová. However, some are criticizing the timing of the proposal's development. This is because the EU was in the midst of drafting the legislation when Georgia was experiencing protests against a similar bill that would have mandated organizations to register as "agents of foreign influence" if more than 20 percent of their funding was from abroad.