The European Commission has initiated proceedings against Hungary within the framework of a new mechanism according to which the use of funds from European funds is conditional on respect for the rule of law.
We have identified issues that could represent violations of the rule of law and that affect the EU budget, Vice President of the Commission for Transparency Vera Jurova said at the press conference.
The procedure was initiated by sending a letter representing an official warning.
Von der Leyen announced that she would deny Hungary EU funds.
It was sent by Budget Commissioner Johannes Hahn on behalf of the European Commission, but the content of the letter has not been published.
On Twitter, Hahn wrote: "Today the European Commission issued its first notice under the General Conditions Regulation. Hungary is now invited to respond to the European Commission's concerns. Our duty is to protect the EU budget, the Commission continues to check all member states under of this instrument".
According to the rules, the procedure could last up to nine months.
Hungary now has two months to respond to the letter, and the Commission has one month to analyze the response.
After that, the Commission can propose the suspension or reduction of payments from European funds due to established violations, and the final decision is made by EU members by a double majority.
At least 15 member states, with at least 65 percent of the EU population, must vote for punishment.
The regulation, which has never been used before, allows the European Council to adopt measures such as the suspension of payments financed from the Union budget or the suspension of approval of one or more programs financed from the budget at the request of the European Commission.
The mechanism was approved by the European Court of Justice earlier this year after Hungary and Poland drew ire from the Commission in recent years for reforms that limit the independence of the judiciary and civil society or target the rights of minorities, including women and the LGBTQ community.
Hungary and Poland, which could be left without significant funds from the European budget because of that regulation, turned to the Court of the EU in March last year and requested its annulment, but the Court rejected their request in February of this year.
Bonus video:
