EU Court to Pronounce On Rule-of-Law Budget Tool

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

Did the EU exceed its powers by adopting a new tool to withhold money from nations backsliding on the rule of law? We may find out more today. That’s when the bloc’s top court will issue a non-binding opinion after Poland and Hungary disputed the validity of the move. The European Commission, which has been battling the two nations for years over issues from LGBTQ rights to climate policy, argues that the new powers it gained this year help keep in check nations that violate EU legal standards. It has, however, reassessed its position, and President Ursula von der Leyen has said that the step wouldn't be triggered formally until a ruling from the EU Court of Justice, which is expected early next year.