EU court calls for dismissal of Hungary-Poland challenge

The European Union’s highest court has advised that the principle to link the bloc’s budget disbursements to the respect for rule of law are compatible with EU law and that the challenge by Hungary and Poland should be dismissed

BRUSSELS -- The European Union’s highest court on Thursday advised that the principle to link the bloc’s budget disbursements to the respect for rule of law are compatible with the bloc's laws and that the challenge by Hungary and Poland should be dismissed.

The right-wing governments of both nations argued that such a decision lacked the proper legal basis. Both nations, large recipients of EU funds, have come under increasing criticism over the past few years that they are veering away from the Western principles of the respect of rule of law in their nations.

The advice of the court precedes a full court decision, which is expected within the coming months.

Linking the disbursement of funds to democratic principles was a key part of the EU’s decision last year to push through a massive subsidy program for the 27 member nations to overcome the unprecedented impact of the coronavirus pandemic.