Hungary and Poland have lost their court challenge to an EU rule that allows billions of euros of funding to be conditional on democratic standards, the BBC reports.
The Luxembourg-based European Court of Justice ruled that complying with rule of law was a condition of enjoying membership of the EU. There is no appeal against the ruling, which dismissed challenges by Warsaw and Budapest against a new EU sanction that would halt funding to member countries which break European laws.
“Today’s judgements confirm that we are on the right track,” said European Commission President Ursula von der Leyen, announcing a decision on how to act would be made in the coming weeks.
Governments in Hungary and Poland have been widely accused of backsliding on standards in recent years.
The ECJ ruled that “sound financial management of the EU’s budget” could be seriously compromised by breaches of rule of law.
EU member states signed up to common values such as rule of law and solidarity and the EU “must be able to defend those values”.
Both countries have been investigated for undermining the independence of courts, media and non-governmental organisations and both are key recipients of EU funding.
Poland was ordered last year to shut down a disciplinary chamber for judges because it was not independent, while Hungarian Prime Minister Viktor Orban has been accused of curbing the rights of minorities.
The EU has already frozen Covid recovery money worth €36bn for Poland and €7bn for Hungary, and this ruling could affect further funding.
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