By Gabriela Baczynska

BRUSSELS, (Reuters) – The European Union’s highest court approved Wednesday the transfer of billions of euro of EU funds to Poland or Hungary. This is because the bloc has accused the populist leaders of violating democratic freedoms.

Appeal against the decision of the Luxembourg-based European Court of Justice has been denied. The court dismissed Warsaw’s and Budapest’s challenges against an EU sanction which would stop funding member countries that violate European law.

Ursula von der Leyen President of European Commission, Ursula von der Leyen announced today that decisions made by the European Commission confirm our progress. She said the EU executive based in Brussels will decide what to do over the next few weeks.

There are many billions of euro worth of EU funds at stake, as well as the EU’s international cohesion and standing.

Since 2004, Hungary and Poland are big recipients of EU funds. These funds have been poured into former communist nations to aid their economic development.

EU states that countries are required to adhere to common European standards in order for them receive these benefits. Warsaw, Budapest and others have violated those standards by placing political control over media and civil rights and exercising judicial oversight.

These disputes could cause discord within the EU’s eastern flank. The EU seeks unity to respond to Russia’s massing of forces close to Ukraine.

It could have political implications immediately, in particular in Hungary. The April 3 national elections are expected to be Viktor Orban’s tightest race since 2010, when he won a landslide victory.

Orban’s Fidesz ruling party claimed that the ruling was political revenge against Hungary and meant to support the united opposition.

Mateusz Morawiecki, the Polish Prime Minister, stated at a press conference that Poland believes centralisation and bureaucratic centralisation are dangerous processes. His Justice Minister, Judith Varga stated that Brussels had been abusing its rights against member countries.

DESTRUCTING EU FROM WITHIN

Already, the EU has frozen funds to help with pandemic recovery in Poland for 36 billion euros (41 billion dollars) and Hungary for 7 billion euros (71 billion). Now, the so-called condition mechanism could impact any component of the EU budget that is worth 1.8 billion euros ($2 Trillion) in 2021-27.

Poland is the largest former Communist EU member, with 38 million inhabitants, and can receive more than 75 Billion Euros through 2027. This includes funding for climate, digitalisation, public health, and for other purposes. Hungary, with its smaller population but receiving an even larger share of EU per capita spendings, has twice the EU’s size.

Amnesty International stated that Hungary and Poland are rapidly regressing in respect for media freedom, independence judges and the right to protest. They should not try to block EU funds unless they respect the rule of law. Instead, they should respect human rights and tidy up their act.

EU officials stated that the bloc could move first on Hungary, but political horse-trading will likely delay a decision not to withhold funds for at least the second half of this year.

Poland and Hungary threatened to strike back by blocking other EU decisions that are subject to unanimity (including on foreign policy and climate change)

Katalin Ceh, a libertarian Hungarian EU lawmaker said that ignoring the erosion in the rule of laws in Poland and Hungary would have the same effect as watching the dark comedy “Don’t Look Up”, where politicians fail to prevent an asteroid’s destruction of the Earth.

She stated, “If you are sitting still and assessing then Mr Orban & Mr Morawiecki could achieve their goal of destructing the Union from within.”

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