The Hungarian parliament has passed a new law creating a media watchdog with powers to restrict and punish private news agencies. The new body has the power to impose sanctions upon media outlets if it decides that their coverage is unbalanced or breaches the rules on coverage of sex, violence and alcohol. The Hungarian parliament is dominated by the centre right ruling party Fidesz, which will also act as the majority in the media watchdog. Hungary is set to take EU presidency on 1 January 2011.