London Daily

Focus on the big picture.
Saturday, May 31, 2025

EU top court paves way to cut billions to Poland and Hungary

EU top court paves way to cut billions to Poland and Hungary

The European Union's top court on Wednesday cleared the way to cut billions of euros of funds to Poland and Hungary, whose populist rulers the bloc accuses of violating democratic rights.
There is no appeal against the ruling by the Luxembourg-based European Court of Justice, 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 judgments confirm that we are on the right track," said European Commission President Ursula von der Leyen, announcing the Brussels-based EU executive would decide how to act in the coming weeks.

At stake are hundreds of billions of euros of funds, the EU's internal cohesion, and its international standing.

Hungary and Poland have long been big beneficiaries of EU funds, which the bloc has poured into the former communist countries to help develop their economies since they joined in 2004.

The EU says that to receive those benefits, countries must uphold common European standards, which Warsaw and Budapest have flouted by imposing political control over the judiciary and media, and restricting civil rights.

Disagreements over the rule of law come as the bloc seeks to present a united front on its eastern flank, where Russia has massed forces near Ukraine.

The decision could also have immediate political impact, particularly in Hungary, where an April 3 national election is expected to be the tightest race for nationalist Prime Minister Viktor Orban since his landslide victory in 2010.

Orban's ruling Fidesz party said the ruling was "political revenge" against Hungary, meant to help the united opposition. Justice Minister Judit Varga said Brussels was abusing its powers against national member states.

Polish Prime Minister Mateusz Morawiecki told a news conference: "Poland believes that centralization, bureaucratic centralization, federalization... is a dangerous process."

The EU has already frozen pandemic recovery funds worth 36 billion euros ($41 billion) for Poland and 7 billion euros for Hungary. The so-called "conditionality mechanism" could now affect any part of the EU budget, worth 1.8 trillion euros ($2 trillion) for 2021-27.

Poland, the biggest formerly communist EU member with 38 million people, is eligible for more than 75 billion euros through 2027, including for climate, digitalization and public health. Hungary has a population around a quarter the size but has received an even greater share of EU spending per capita.

"Hungary and Poland have been rapidly backsliding on media freedom, independence of judges, the right to protest," said Amnesty International. "Instead of trying to oppose EU funds being conditional on respect for the rule of law, they should respect people's rights and clean up their act."

EU officials said the bloc might move on Hungary first, while political horse-trading would probably delay a decision to withhold funds at least until late this year.

Poland and Hungary have threatened to retaliate by stalling other EU decisions that require unanimity, including on climate and energy, as well as foreign policy.

Orban's chief of staff Gergely Gulyas told Reuters that the dispute would not lead Hungary to block an EU-Africa summit later this week or interfere with any potential sanctions against Russia over Ukraine.

Katalin Cseh, a liberal Hungarian EU lawmaker, said ignoring the erosion of the rule of law in Poland and Hungary would be comparable to the dark comedy film "Don't Look Up", in which politicians fail to stop an asteroid from destroying the Earth.

"If we are sitting tight and assessing, then Mr Orban and Mr Morawiecki would achieve their goal of destroying the Union from within," she said.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×