Brussels is ready to freeze regional aid payments to Poland over threats to judicial independence, as the standoff over rule of law violations teeters over funding lines worth tens of billions of euros to Warsaw, writes The Financial Times.

Warsaw’s failure to comply with crucial EU requirements on basic rights means that the bulk of payments under the union’s new round of cohesion spending will be deferred by the European Commission until the problem is resolved, officials said. Poland expects to receive consolidation financing of 76.5 billion euros from 2021 to 2027.

The move increases financial risks in a long-running legal dispute between Brussels and Poland’s ruling Law and Justice party over rule of law issues. The struggle revolves around subordinating the judiciary to the executive - and how far Warsaw will need to go to loosen its grip on the courts to abide by EU law.