Hungary and Poland have filed a suit in connection with the mechanism in the European Union budget that links EU funding to the rule of law, the European Court said on Thursday.
The bloc’s budget and post-pandemic recovery package approved in December contains a clause linking funding to observance of the rule of law, penalising member states that misuse EU monies.
Accordingly, the European Commission can recommend suing a member state. Thereafter, the European Council decides over the course of 1-3 months how to proceed regarding abuses of fundamental EU values in relation the management of EU funds.
Meanwhile, the final beneficiaries of the funds are granted access to the monies they are entitled to.
Hungarian Justice Minister Judit Varga on Thursday said the conditionality mechanism “seriously infringes legal certainty”.
“As we promised last year, we are challenging the rule on conditionality before the Court of Justice of the European Union, together with Poland,” she said.
featured image: Hungarian PM Orbán and Polish PM Morawiecki earlier; via MTI/PM’s Press Office/ Zoltán Fischer