The European Union executive is expected to recommend on Sunday suspending some funding for Hungary envisaged under the bloc's shared budget for 2021-27, two officials said on Wednesday.
That would be the first instance of the EU imposing its new financial sanction meant to help protect democratic principles in the 27-nation bloc where Poland and Hungary stand accused of damaging the rule of law.
Up to 70% of 22.5 billion euros worth of cohesion funds earmarked for Hungary could be affected, one official said, though neither person specified the exact sum in question.
The Hungarian forint currency eased slightly against the euro on the news to 405.15 from 403.49.
(Reporting by Jan Strupczewski and Gabriela Baczynska)
