In July 2025, Hungary enacted the 'Protection of Local Identity' law, granting municipal authorities unprecedented powers to regulate residency and property acquisitions. This legislation allows local governments to impose conditions on new residents, such as requiring a clean criminal record, proof of employment, or payment of a settlement contribution. While intended to preserve the cultural and social fabric of communities, the law has been criticized for disproportionately affecting Hungary's Roma population, the country's largest minority group. The European Roma Rights Centre (ERRC) has condemned the law as a form of 'apartheid by stealth,' arguing that it provides a legal framework for racial segregation. The ERRC points out that municipalities can now adopt decrees that systematically exclude Roma individuals from settling in their towns and villages. For instance, the town of Sátoraljaújhely implemented a decree requiring new residents to have a high school diploma, speak Hungarian, and pay a settlement contribution, effectively barring many Roma from moving in. Human rights organizations and legal experts have raised concerns that the law violates EU anti-discrimination directives and the European Convention on Human Rights. They argue that the legislation institutionalizes racial segregation and undermines the rights of the Roma community. The European Parliament has questioned the compatibility of the law with EU law, highlighting the potential for systemic discrimination. The law's implementation has led to increased tensions and protests. In January 2026, over a thousand protesters, many from the Roma community, demonstrated in Budapest, demanding the resignation of János Lázár, Hungary's Minister of Construction and Transport, over comments perceived as racist. Lázár had referred to the Roma population as an 'internal reserve' for tasks that others are unwilling to perform, further fueling accusations of systemic discrimination. The 'Protection of Local Identity' law exemplifies a broader trend in Hungary of policies that critics argue marginalize minority communities under the guise of national interest. The law's impact on the Roma community underscores the ongoing challenges of combating discrimination and ensuring equal rights for all citizens in Hungary.