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EU Member states that violate the rule of law can be confronted with infringement proceedings and “there is always the option of withdrawing European funds from them,” German chancellor Friedrich Merz said […] when asked on Hungary and Slovakia. “If it is necessary, then we will deal with it.”

Merz’s comments also included a jab against Hungary, which already has most of its funding suspended due to ongoing rule-of-law concerns. The threat to cut funding for Slovakia and to continue to hold Hungary accountable is the clearest sign yet that Merz — who took office earlier this month — is willing to escalate the dispute with the two central European countries.

Hungarian Prime Minister Viktor Orban, whose 15-year tenure has been marked by disputes with the EU, has again faced increased scrutiny this month over fresh legislation introduced by his party.

The bill is aimed at slashing financial support to civil society groups and media outlets receiving foreign funding, with the government claiming they threaten Hungary’s sovereignty. Critics have likened the move to President Vladimir Putin’s attempts to crack down on domestic rivals.

Slovakia has also increasingly drawn concern in Brussels. Prime Minister Robert Fico’s government has adopted confrontational rhetoric toward the EU and aligned itself more closely with Orban. Fico has also come forward with anti-Ukrainian statements and attracted criticism over a recent visit to Moscow to meet Putin.

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Orban’s resistance has also caused repeated delays in the EU’s support for Ukraine and sanctions against Russia.

“We will not be able to avoid this conflict with Hungary and Slovakia if we continue on this course,” Merz said. “We cannot allow the decisions of the entire EU to depend on a small minority. And there could certainly be clearer words and possibly also harder conflicts.”