EU faces crisis as Hungary and Poland veto seven-year budget

Countries reject package over attempts to link funding to respect for rule of law

The EU is facing a crisis after Hungary and Poland vetoed the bloc's historic 1.8tn (1.6tn) budget and coronavirus recovery plan over attempts to link funding to respect for democratic norms.

The move unravels months of negotiations over the scale and terms of the EU's spending and sets the stage for a stormy videoconference meeting of the bloc's leaders on Thursday.