ECJ to rule on Hungary-Poland rule-of-law challenge

Poland, Feb 16: The European Court of Justice (ECJ) is set to decide on Wednesday whether Brussels can cut funding to countries that violate rule-of-law standards.

Judges at the Luxembourg court are responding to a challenge to the bloc's so-called "conditionality mechanism" by Hungary and Poland.

What are judges deciding?

The two countries had launched an appeal against the sanctions mechanism, which aims to punish rule-of-law violations in member states by withholding funding earmarked for those countries.

Both countries are major recipients of EU funds and feared that the European Commission would use the sanctions against them.

Brussels introduced the measure after accusations that Budapest and Warsaw have undermined democratic standards, such as judicial independence.

Although the mechanism has been in place since the start of 2021, the Commission said it would wait for Wednesday's ruling before activating the procedure.

The delay had been agreed with Hungary and Poland in 2020 as a concession at the time for urgent agreement on important EU budget decisions.

The ECJ's advocate general, Manuel Campos Sanchez-Bordona, in December said judges should dismiss the countries' legal challenge.

While the opinion is non-binding, the court tends to follow the opinion of the top lawyer.

What have Hungary and Poland done?

The European Commission sent formal letters to Warsaw and Budapest in November, outlining what it considers to be democratic shortfalls.

In the case of Poland, Brussels criticizes judicial reforms that it claims undermine the independence of judges and a refusal by Warsaw to accept the primacy of EU law over Polish law.

When it comes to Hungary, the Commission cites concerns over the issuing of public contracts, conflicts of interest and corrupt spending of EU funds.

For months, the European Parliament — which approves the EU's multi-year budgets — has urged the Commission to cut the funds immediately.

It says the countries have long passed the threshold at which the mechanism should be launched. The legislature has even launched its own legal proceedings against the Commission, accusing it of inaction.

However, the EU executive — wary that it might fall foul of legal challenges — has preferred to gradually build a case it hopes will be unassailable.

The Commission would need the votes of most member states to approve the mechanism's use under qualified majority voting.

Source: DW