By Jan Strupczewski

BRUSSELS. (Reuters). Despite the possibility of approval by the European Commission in November of EU-funded recovery plans for Poland and Hungary, EU officials stated that conditions will be placed on release of EU funds.

These plans are part of the EU’s 800-billion euro plan to revive Europe after the coronavirus epidemic. It includes loans and grants at extremely low interest rates. They will be available until 2026.

Poland, which could receive EU grants totalling 23 billion Euros, would be eligible for 34 billion loans at low interest rates. Hungary, on the other hand, can look forward to receiving grants in excess of 7 billion Euros in the future.

While 19 countries are now on the verge of granting their approval and pre-financing has already reached its first billions, Warsaw and Budapest waited for months for the green light.

This is because the EU thinks that the ruling parties of both countries undermine the independence and integrity of courts, media, and non-governmental organisations. In Hungary, there’s a problem in corruption.

The right-wing, nationalist government of Poland also refused to apply the verdicts from the EU’s highest court.

These deficiencies were identified in the EU’s Country Specific Recommendations that are issued annually by the Commission to EU members. The approval of EU loans and grants is contingent on the fulfillment of these recommendations.

The bloc also agreed to strengthen the connection between the respect of the EU’s principle democratic division of power and the protection of EU money from misuse by a special rule of law mechanism, which entered into effect on January 1.

Hungarian and Polish protestors against the link between the observation of the rule-of-law and EU access to money in March challenged the EU’s highest court. The Commission stated that it would await the verdict before applying law.

It is possible to expect the verdict by 2022 or earlier.

However, EU officials stated that under pressure from European Parliament who wants law to be implemented quickly, the Commission may launch first legal steps within the framework of the mechanism over the next weeks.

The highly eurosceptic ruling coalition of Poland needs to have access to the EU recovery funds in order to shore up their waning support for 2023. This is also crucial for Viktor Orban’s right-wing Fidesz party, which will face elections in April 2022.