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People protest against Prime Minister Orban's efforts to force a George Soros-founded university out of the country in Budapest, Hungary, April 2, 2017. REUTERS/Bernadett Szabo

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By Gergely Szakacs and Marton Dunai

BUDAPEST (Reuters) - Hungary approved a new law on Tuesday that could force a university founded by financier George Soros out of the country despite protests against the plan in Budapest and condemnation abroad.

Prime Minister Viktor Orban, a critic of liberal civil organisations funded by Soros, said on Friday the Central European University had violated regulations in awarding diplomas, an allegation the college rejects.

The law, which the government says is designed to address administrative shortcomings of foreign universities, marks the latest clampdown on independent institutions that has seen Orban allies increase their influence over the judiciary, the media and the central bank.

Addressing parliament before the vote, Orban's human affairs minister said institutions backed by Soros were trying to undermine Hungary's government.

"The organisations of George Soros operating in Hungary and around the world are just such pseudo-civilian agents, and we are committed to stamping out such activity," Zoltan Balog said.

CEU, founded in Budapest in 1991, has 1,400 students. It said it operated lawfully. The school will challenge the law's constitutionality and mount an international campaign to convince Orban's government to reverse course, CEU Rector Michael Ignatieff told a press conference.

Ignatieff spoke from Washington DC, where he is meeting lawmakers and government members, including Deputy Secretary of State Thomas Shannon.

"We will respectfully ask the president of Hungary to exercise his constitutional responsibility (regarding) the legislation," he said.

"In the fight to save CEU we are fighting for the academic freedom of all Hungarian institutions of higher learning."

LOCAL PROTEST, INTERNATIONAL SUPPORT

Thousands of students, professors and supporters rallied in Budapest on Sunday demanding the government withdraw the draft legislation. Another protest is planned on Tuesday.

The new law sets several requirements that could force the CEU to leave Hungary.

The Council of Europe, Europe's leading human rights organisation, said it was following developments.

"Academic freedom, right to education are key," spokesman Daniel Holtgen said in a tweet.

Under the law, foreign universities must have campuses in Budapest and their home country. The CEU operates in Budapest but is the only international college with no overseas branch.

The law also stipulates that foreign universities can award degrees in Hungary only if the governments of Hungary, and in CEU's case, the United States, sign an accord on the matter within six months of the law taking effect.

The top U.S. diplomat in Hungary said Washington was "disappointed by the accelerated passage of legislation targeting Central European University."

"The United States will continue to advocate for its independence and unhindered operation in Hungary," chargé d'affaires David Kostelancik said.

"This (bill) has zero professional justification," Socialist lawmaker Istvan Hiller, a former education minister, told parliament.

More than 500 international academics including 17 Nobel Laureates have voiced support for the CEU. The U.S. State Department has urged Budapest "to avoid taking any legislative action that would compromise CEU's operations or independence."

(Editing by Tom Heneghan and Stephen Powell)

Reuters

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