BUDAPEST - Hungary's controversial new sovereignty law has been criticised by the domestic opposition as another attack on the country's democratic values and the rule of law — and it could bring yet another clash between Budapest and Brussels.

The draft law, submitted on Tuesday night by the prime minister Viktor Orbán's ruling Fidesz party, would establish an oversight authority to monitor foreign interference in Hungarian elections and propose legal changes.

The new law coincides with the controversial launch of a billboard campaign and a non-binding national consultation over funding for Ukraine and its EU membership bid.