Balkan states Serbia and Montenegro have also lost their democratic status for the first time since 2003 due to "years of increasing state capture, abuse of power, and strongman tactics employed" by their respective Presidents Aleksandar Vucic and Milo Djukanovic, the report said. The decline of EU member Hungary, once a "democratic frontrunner" in 2005, was "the most precipitous ever tracked" by the human rights group.
In 2020 Hungary became the first country to fall by two of the group's ranking categories and "leave the group of democracies entirely," the report said.
"Hungary today can no longer be regarded as a democracy," Freedom House said.
Orban's government has "dropped any pretence of respecting democratic institutions," it said.
"After centralising power, tilting the electoral playing field, taking over much of the media, and harassing critical civil society organisations since 2010, Orban moved during 2019 to consolidate control over new areas of public life, including education and the arts."
The adoption in March of a COVID-19 emergency law that lets the government rule by decree indefinitely "has further exposed the undemocratic character of Orban's regime".
A Hungarian government spokesperson dismissed the ranking and described the group as the "fist" of the "Soros network", referring to the US billionaire George Soros long accused by Orban of meddling in Hungary.