EU may not stop democratic slide in Poland but Warsaw risks consequences

General view of the Polish parliament before the voting on the bill that calls for an overhaul of the Supreme Court, in Warsaw, Poland, July 20, 2017. Agencja Gazeta/Slawomir Kaminski/via REUTERS

BRUSSELS (Reuters) - The European Union executive holds only limited leverage to stop ruling nationalists eroding the rule of law in Poland but they risk facing consequences including sharp cuts in EU funds that help develop the ex-communist state.

In power since late 2015, the arch-conservative, eurosceptic Law and Justice Party (PiS) is now speeding through parliament a law that would give the government more direct control of the country's Supreme Court. It is the latest in a raft of bills that critics say are wiping out judicial independence.