Paris: France has said that a new media law passed by Hungary, which took up the European Union's (EU) rotating presidency on January 1, violated EU laws on press freedom, and called on other members of the bloc to take action against it.

French government spokesman and Budget Minister Francois Baroin told France Inter radio the law was "incompatible with the application of ideas on press freedom that have been validated in European treaties".

Several EU members have criticised Hungary over the law, which calls for a new media authority, dominated by appointees of the ruling Fidesz party, to oversee all public news production. It can also levy big fines on private media, which are required to be "balanced".

Hungary has been publicly rebuked by Britain, Germany, and by Luxembourg, whose foreign minister questioned whether Hungary was worthy of leading the 27-member bloc.

Budapest has said it was confident that the regulation "complies with the relevant EU standards in all respects". In France, the law has drawn criticism from across the political spectrum, the main opposition Socialist Party slamming it as a "very bad sign for Europe and for the liberty of the press".

The controversy over the media law has contributed to a growing cloud over Hungary's EU presidency.

Budapest and Brussels have clashed several times since Prime Minister Viktor Orban rejected to austerity measures, cut ties with the International Monetary Fund and opted for unorthodox fiscal steps to cut the budget deficit and boost economic growth.