The tensions also weaken the EU's hand vis-a-vis Russia and China and affect its standing as the international torchbearer for rights and values. The enmity between Warsaw, Budapest and EU core damages the bloc's cohesion, making it harder to agree on issues like climate and taxes. The Netherlands and allies demanded solid guarantees that such funding would not support governments restricting human and civil rights. Wealthier EU member states pushed for the tool in return for agreeing to debt sharing across the bloc to raise emergency stimulus in the COVID pandemic, a landmark deal for the EU.

Should the ECJ grant the challenge, which an EU official said would be 'extremely surprising', it would mark a major victory for Warsaw and Budapest and mean the EU cannot use the 'cash-for-democracy' sanction in the current form. The so-called 'conditionality mechanism' could affect any part of the EU budget, worth 1.8 trillion euros (US$2 trillion) for 2021-27. Should the ECJ uphold the new powers, it would reaffirm the bloc's strongest tool yet to prevent shared spending from benefiting those breaking liberal democratic laws. Here is what is at stake in the battles over democratic norms in the EU. The announcement will be livestreamed from 0830 GMT on Wednesday. The ECJ's final rulings cannot be appealed. The Luxmbourg-based European Court of Justice (ECJ), the bloc's highest court, is expected to dismiss the challenges, in line with an initial legal opinion in December. Wednesday's ruling will mark a milestone in the EU's feud with Poland and Hungary's populist rulers, criticised for curbing the rights of women, LGBT people and migrants, and for stifling the freedom of courts, media, academics and NGOs. The European Union's top court will rule this week on challenges by Poland and Hungary to a new tool that would cut funding by the 27-nation bloc for members that flout democratic values.

Blocs app is upgrading worth it