After weeks of dispute with Hungary and Poland, a compromise has been reached: According to Council President Michel, the member states agreed on a new EU budget and billions in Corona aid at the EU summit.
The way for the EU budget and the billions in Corona aid is free. At their summit in Brussels, the heads of state and government agreed on a compromise on the new rule of law mechanism that the German Council Presidency had negotiated. This was announced by EU Council President Charles Michel on Twitter.
This means that the member states could now begin to implement the financial package and rebuild their economies in the Corona crisis, wrote Michel. Europe’s “trend-setting economic stimulus package” will “drive our green and digital transition forward”.
Poland and Hungary fear cuts in EU funds
Previously, Hungary and Poland had blocked important decisions for weeks. Both countries fear that the rule of law mechanism aims to cut EU funds for them because of controversial political projects. Hungary and Poland have long been accused of unduly increasing their influence over the judiciary. In addition, restrictions on media freedom and insufficient protection of minorities are criticized.
The compromise now provides that the new procedure for punishing violations of the rule of law is supplemented by an additional declaration. This stipulates, among other things, what options Hungary and Poland have to defend themselves against the application of the regulation. One of them is a review of the regulation for the procedure by the European Court of Justice (ECJ). She would probably delay the first use of the technique by months, if not more than a year.
Many EU countries are dependent on Corona aid
The compromise also stipulates that the determination of a violation of the rule of law is not enough to reduce EU financial aid. It must therefore be clearly demonstrated that the breach has a negative impact on the use of EU money. In addition, the heads of state and government should have to deal with the issue in disputes.
Had there been no agreement in the dispute, the EU would only have had a kind of emergency budget from January onwards. Numerous programs could not have started. In addition, it would then have been necessary to organize the Corona economic stimulus program of up to 750 billion euros without Poland and Hungary. Countries that are suffering heavily from the Corona crisis and at the same time have a debt problem – for example France, Italy, Spain, Portugal and Belgium – depend on the aid.
Orban and Morawiecki celebrate “victory” – and announce lawsuit
The heads of government of Hungary and Poland viewed the agreement at the EU summit as a great success. Hungary’s Prime Minister Viktor Orban wrote on Facebook that his country “won” and successfully defended Hungarian interests. “Common sense” triumphed. Poland’s Prime Minister Mateusz Morawiecki spoke of a “double victory”: His country would receive billions from the budget and this money was “safe” from the rule of law.
Later, the two politicians also announced a lawsuit before the ECJ against the regulation on the rule of law. “Of course we will, because we believe that it has to be checked whether this is in accordance with the treaties,” Morawiecki told the PAP news agency. Orban also reiterated the plan to appeal to the ECJ.
