Poland and Ukraine have opposed the new rule that allows the EU to cut funding to member states that violate democratic rights and freedoms.
"We believe that such solutions have no legal basis in the Treaties, that they interfere with the competence of the member states and violate EU law," the Polish government announced when it appealed the decision to the European Court of Justice last spring.
Rejects the appeal
However, the Advocate General who has dealt with the matter sees no obstacles in introducing the rules.
"Compliance with the rule of law and the proper implementation of the Union budget can be of fundamental importance for the sound management of public finances," the Court said in a press release in early December, when Advocate General Manuel Campos Sánchez-Bordona proposed that the appeal to be rejected.
On Wednesday, the decision of the Supreme Court of the European Union came: The appeal is rejected and it thus becomes possible to stop EU funds to countries that do not live up to the rule of law.
Harder conditions
For many years, demands have been made - mainly from the EU countries in the northwest - to set stricter democratic and legal conditions for the disbursement of EU funds.
Much is due to criticism of developments in countries such as Poland and Hungary, where various measures in recent years have been widely accused of increasing the political control of the judiciary and restricting freedom of expression and association.
The result was eventually a new rule that will make it possible to stop the flow of money if it is considered a risk of "misuse of EU funds".