Hungary Prime Minister Viktor Orban, poised to take over presidency of the European Union, is fighting back against criticism from Germany and other countries over a new Hungarian law that some fear could be used to curb press freedom.

The law, which was passed last week by the Parliament in Budapest and comes into force on Jan. 1, empowers the newly created National Media and Communications Authority to impose heavy fines for coverage that it considers unbalanced or offensive to human dignity or common morals.

Dunja Mijatovic of the Organization of Security and Cooperation in Europe, which monitors press and human rights freedoms throughout the region, said he was concerned that the legislation, “if misused, can silence critical media and public debate in the country.”

The German Chancellor Angela Merkel spoke out strongly against the new law.

“As a country that is about to take over the president of the E.U., Hungary will have a particular responsibility for the image of the whole union in the world,” said a spokesman for Mrs. Merkel.