Gabriela Baczynska and Philip Blenkinsop. John Chalmers

BRUSSELS, (Reuters) – European Union leaders will confront their Polish counterparts on Thursday in a dispute over a court decision that questioned European law’s primacy. This is a dramatic escalation that could lead to a new crisis within the bloc.

Both the French President and the Dutch Premier are keen to stop their countries’ cash contributions to EU benefitting socially conserving politicians who undercut human rights set forth in western liberal democracies laws.

David Sassoli the head of European Union parliament stated, “EU states who violate the law should not get EU funds,” before the 27 members of the bloc convened in Brussels.

“The European Union is an institution built upon the principles of democracy, law and order. These principles must be protected in any member state that is under threat.

Polish Prime Minister Mateusz Morawiecki plans to defend an Oct. 7 judgment by Poland’s Constitutional Tribunal, which stated that certain elements of EU Law were inconsistent with Poland’s Constitution.

French officials said about the Polish ruling that “it’s a big problem and a challenge to the European Project.”

Morawiecki already faced criticism from EU lawmakers, and the head the Commission claimed that any challenge to the unification of Europe’s legal order will not be lost.

Poland will be paying a lot of money for this and the other policies he has introduced through his Law and Justice (PiS).

“NOT TENTABLE”

The ruling means that the PiS has raised the stakes after years of bitter disputes with the EU about democratic principles, from freedom of media and courts to women’s rights and the rights of migrants and LGBT persons.

Senior EU diplomats stated that such policies are “not sustainable in the European Union.”

Warsaw is currently prohibited by the Commission from accessing 57 billion euro ($66 billion), of EU emergency funds, to support its recovery from the COVID pandemic. Warsaw could also lose other EU aid and face penalties from the top court.

Sweden, Finland, and Luxembourg also want Warsaw to be a better place. They have intensified their criticisms since 2015 when PiS was elected to power.

It is a financial country with 38 million inhabitants, Poland.

However, for the EU the latest twist to feuds in feuds avec the eurosceptic PiS is also at a delicate time as it struggles with Brexit’s fallout.

Without Britain, the bloc made a significant leap towards integration last year when it reached an agreement on joint debt guarantees to raise $750 billion for economic recovery. It was met with stiff resistance by wealthy countries like the Netherlands.

Even though most EU nations share one currency, fiscal coordination cannot be greater if wealthy donors don’t make sure that they are not funding political parties which violate core liberal principles.

Morawiecki dismissed the notion of leaving the EU as a “Polexit”. Poland continues to support membership, and has greatly benefited from financial assistance from the bloc that it joined in 2004, which is why its popularity remains high.

On Wednesday, the Polish diplomatic chief spoke in conciliatory tones, noting that while the Polish tribunal was not challenging EU laws, it did challenge certain interpretations.

Warsaw, backed by Viktor Orban, the Hungarian Prime Minister, wants national capitals to have full power and is expressing outrage at excessive powers being held by the Commission.

Although many are frustrated by failed attempts at getting Warsaw to change its mind, Angela Merkel (German Chancellor) has always warned against isolating Poland.

As she travels to Brussels, she finds her influence waning. She will then hand the reins to a new German chancellor, after sixteen years.

Apart from putting pressure upon Poland, they will also be discussing how to deal with a sudden rise in energy prices.

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