BRUSSELS (AP) — The European Union is taking a big step toward fining Hungary for failing to lift restrictions on the financing of non-governmental organizations from abroad. Europe’s top court ruled last year that the restrictions are incompatible with EU law. But the European Commission says that Hungary continues to flout the ruling. The EU’s executive arm said Thursday that it’s sending a “letter of formal notice” to the nationalist government in Budapest. It will have two months to explain why it’s not complying. The Commission can then refer the matter back to the court with a recommendation about the size of the fine. Hungary says it’s discussing the matter with Brussels and that it might repeal the law.