"The (European) Commission put a timeline on the Lithuanian government and that will end on 17 July, and the Commission put into place the question of freezing European funds if the management structure is not improved," German MEP Michael Theurer told reporters in Vilnius.
Theurer heads a delegation of EU parliamentarians who are completing their visit to Lithuania on Thursday.
"That is the ultima ratio which we understand and the back the Commission position," said the German politician, who chairs the European Parliament's Committee on Budgetary Control.
Theurer noted that 467 million euros have been spent so far on the decommissioning work, which is less than half the amount allocated in the EU's 2007-2013 budget.
The EU parliamentarian said that if these problems are not solved, it will be difficult for Lithuania to negotiate for financing in the EU's next budget period.
The European Commission has proposed to provide 210 million euros in EU funds for the Ignalina plant's closure for the period starting in 2014, while Lithuania is asking for more than 700 million euros.
"The talk about new money is not easy if available funds amounting up to 500 billion euros are not used effectively now," Theurer said.