Brussels is expecting to send letters to both over the coming days to demand a response to reports that funds provided by the bloc could have been subjected to corruption or fraud, according to a report by Bloomberg, officials familiar with the discussions. This would be the first step in a new process that could potentially see billions of euros withheld from member states accused of rule-of-law violations.
Officials close to the matter have claimed the EU’s executive arm has already prepared the letters to be sent to Poland and Hungary, which contain specific examples of alleged wrongdoing.
The letters will be sent to Budapest and Warsaw once they are given the green light by European Commission President Ursula von der Leyen.
Poland and Hungary will be given eight weeks to respond to the letters, according to the officials.
But if these replies are not deemed satisfactory, the EU executive could push other member states to help it press ahead with the second stage of the procedure, which would be to approve the sending of formal letters of notification.
Poland and Hungary joined the EU in 2004 but have become embroiled in a bitter war of words with Brussels over recent weeks and months.
They have both continued to argue the mechanism in question was adopted in violation of the bloc’s treaties.
The two member states have come under fire over anti-democratic laws, including a regime to punish judges in Poland and anti-LGBTQ legislation in Hungary.
Last month, Ms von der Leyen insisted “no measures will be taken” before a ruling from the European Court of Justice on a challenge by the two member states who had questioned the level of legality behind the new powers from the Commission.
But the EU chief also warned it could still press ahead with the opening steps of the conditionality mechanism and “send letters to ask for information or questions that are necessary to be asked”.
The Polish and Hungarian governments will be the first ones to receive such letters.
But the European Commission could launch a similar process over the coming months against other member states.
Last month, outgoing German Chancellor Angela Merkel warned the EU against rushing to stop funds to Poland and Hungary amid mounting pressure on the bloc to take action against both countries.
The EU figurehead had been speaking to day after a European Parliament committee threatened to take legal action against the Commission over its reluctance to suspend funds.
Ms Merkel said in Brussels following a meeting with Belgian Prime Minister Alexander De Croo: “I think it is now time to talk in-depth with the Polish government, how we can overcome the difficulties.
“We have big problems, but my advice is to solve them in talks, to find compromises.”
The outgoing German leader made it clear she does not agree with those who believe “political differences” should “always be resolved through court proceedings”.
She added: “That’s why I’m a bit concerned about the large number of cases that are now being settled in court.”
Mrs Merkel also said the EU’s rule-of-law mechanism had required “a great willingness to compromise on all sides”.
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