On Wednesday, February 17, the highest court in the EU dismissed a law challenge brought by Poland and Hungary, which leaves the nations vulnerable to funding freezes. The Court of Justice of the European Union (ECJ) is upholding the so-called conditionality mechanism, which makes receiving EU funding dependent on whether or not the recipient is complying with key membership principles.

According to the court, the EU’s existence relies on member states trusting each other to adhere to core values. This includes LGBTQ+ inclusion and rights, an area in which both Poland and Hungary have been widely criticised for as of late.

“Compliance with those values cannot be reduced to an obligation which a candidate state must meet in order to accede to the European Union and which it may disregard after accession,” it ruled.

#ECJ rejects the actions brought by #Hungary and #Poland against the #EUBudget conditionality mechanism on the respect of the #RuleOfLaw by Member States @Europarl_EN @EUCouncil

— EU Court of Justice (@EUCourtPress) February 16, 2022

Warsaw and Hungary challenged the mechanism which was introduced in January 2021, but the ECJ confirmed that it complies with EU law. Since the ruling, Poland has accused the court of “blackmail”, with Polish Justice Minister Zbigniew Ziobro stating “this was not the end” for Warsaw’s legal battle against the EU.

“This is a historical moment when the EU changes from an area of freedom into an area where illegal violence may be perpetrated in order to strip the member countries of freedom and restrict their sovereignty,” he said.

In contrast, President of the European Commission, Ursula von der Leyen, welcomed the ruling from the top EU court, stating that her officials will “act with determination” against Poland and Hungary.

“Today’s judgments confirm that we are on the right track,” she said.

I welcome @EUCourtPress confirmation of the legality of the conditionality regulation.

The Commission will defend the Union’s budget against breaches of the principles of the rule of law.

We will act with determination.https://t.co/MduLesefJQ pic.twitter.com/gTB34hBfFp

— Ursula von der Leyen (@vonderleyen) February 16, 2022

Last year, the European Commission took legal action against the two nations for “violations of fundamental rights of LGBTIQ people.” At the time, the EU stated, “Equality and the respect for dignity and human rights are core values of the EU, enshrined in Article 2 of the Treaty of the European Union. The commission will use all the instruments at its disposal to defend these values.”