The German government says it has begun looking into the possibility of freezing EU cohesion funds for countries that violate the bloc's values of democracy and the rule of law. According to an official German government position paper on future EU budget rules, Berlin wants to investigate if "receipt of EU cohesion funds can be linked to compliance with fundamental principles of the rule of law." The funds, which target development in poorer regions of EU states, are particularly important for countries like Hungary and Poland, both of which continue to flout EU regulations.