European Union Threatens Subsidy Cuts to Rein In Rebel Nations

Hungary, Poland bristle at push by wealthier countries to demand good governance

The European Union’s executive branch is raising the ante in its clash with Poland and Hungary over democratic values: Play ball or risk being cut out of EU funding.

A proposed sanctions mechanism would empower the European Commission, the EU executive, to suspend funds when it finds that a country’s courts are no longer independent, when their rulings are ignored or when criminal investigations are hampered.

The...