The European Union's executive arm has started a disciplinary procedure against Hungary that could lead to the freezing of EU funds for backsliding on democratic norms.
The move comes two days after Hungarian Prime Minister Viktor Orban won reelection with an overwhelming majority.
Orban's victory came despite years of EU criticism of Budapest's public procurement system, conflicts of interest, immigration policy, judicial independence, and restrictions on media freedom.
The European Commission said on April 5 that it will try its new rule-of-law mechanism, which it has never used before, and said the impetus for the move was to prevent the misuse of EU funds.
"We've been very clear the issue is corruption," European Commission head Ursula von der Leyen said at a plenary session of the European Parliament. "We will now send a letter of formal notification to start the conditionality mechanism."
The new mechanism was put in place to give the European Union the power to withhold funding from countries that don't follow the bloc's fundamental rules. The mechanism was agreed to by all 27 EU leaders in late 2020, despite reluctance from Hungary and Poland.
The mechanism was supported by richer EU countries that have demanded stronger safeguards to ensure their money does not benefit governments that undercut democracy.
The Hungarian government called the move to use the mechanism a mistake.
Gergely Gulyas, Orban's chief of staff, urged the European Commission "not to punish Hungarian voters for expressing an opinion not to Brussels' taste."
He said the "basic rules of democracy" must be accepted by the commission and urged it to "return to common sense and dialogue."
Hungary and Poland, which both routinely get billions of euros in EU funds, challenged the new procedure in the EU's top court. But the European Court of Justice rejected their motion in February.
For the mechanism to take effect, 15 EU member states representing 65 percent of the bloc's population must agree to penalize Hungary. Budapest will have multiple opportunities to appeal the process.
