Serbia faces the risk of losing up to 1.5 billion euros in EU funding, as the European Commission considers suspending financial support over concerns about democratic backsliding and the country's close ties with Russia.

"We are increasingly concerned about what is happening in Serbia," said Enlargement Commissioner Marta Kos, citing legislation undermining judicial independence, repression against demonstrators, and pressure on independent media.

Last month, Serbia was again under scrutiny due to reports of violence and irregularities during local elections, as well as a police operation at the University of Belgrade that led to clashes with students.

The recently adopted judicial reform package, which changes the appointment of judges and prosecutors, represents a "serious step backwards," Kos warned, adding that she would insist Serbia align its judicial legislation with the recommendations of the Venice Commission.

Members of the European Parliament have expressed concern over what they describe as a rapid deterioration of the rule of law. MEPs Vladimir Prebilič and Sandro Gozi warn that recent events mark a significant escalation.

The EU remains Serbia's largest donor, providing more than 586 million euros in grants between 2021 and 2024. Serbia's ambassador to the EU said he remains confident that funding will not be suspended.