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European Union. The Twenty-Seven approve a compromise on the rule of law

A device conditioning the payment of European funds to respect for the rule of law, a first in theEuropean Union, was adopted on Wednesday September 30 by the representatives of the Member States, despite the opposition of nine countries, Hungary on your mind.

The text proposed by theGermany, which holds the rotating presidency of the EU, plans to reduce or suspend the payments of funds in cases where violations by a Member State of the principles of the rule of law (independence of the judiciary, freedom of the press, etc.) sufficiently directly affect the sound financial management of the EU budget or the protection of the financial interests of the Union.

This text was adopted by a large majority, according to a spokesperson for the German Presidency. Nine countries did not support it and 18 approved it, according to an official tally. A previous diplomatic source mentioned seven votes against and two abstentions.

Talks in the European Parliament

The mechanism must now be the subject of talks with the European Parliament to be included in the multiannual budget 2021-2027, still being negotiated between the States, MEPs and the Commission. This budget must be approved by the MEPs – who demand a strong and dissuasive mechanism on the rule of law, as well as by the 27 unanimously.

The very polarized debate (on the rule of law) reinforces my concerns, and even between Member States we encounter blockages in budget negotiations, the calendar of which is constantly being pushed back., alarmed the German Ambassador to the EU Michael Clauss.

The principle of conditionality rule of law was provided for in the agreement on the 750 billion euros post-coronavirus recovery plan adopted by the Twenty-Seven in July.

About a third (of member states) said on Wednesday they would not support the (German) decision until there was clarification on the entire budget multi-year, a diplomat told AFP.

From the same source, Hungary and Poland, in the crosshairs of Brussels in particular for reforms accused of undermining the independence of the judiciary, voted against the German proposal.

“A form of blackmail”

This text is unacceptable because it amounts to unilaterally changing the European treaties, was indignant Tuesday the Hungarian Minister of Justice Judit Varga, denouncing a form of blackmail.

Finland, the Netherlands, Denmark, Sweden, Luxembourg, Austria and Belgium are also opposed to the German proposal: they blame Berlin for having opted for a sanctions mechanism watered down, according to another diplomat.

The text mentions a financial impact sufficiently direct, which leaves a wide margin of appreciation, and entrusts the Council with the task of adopting possible sanctions by a qualified majority of the Member States – four countries representing at least 35% of the European population could therefore block any decision.

Hot on the question of the rule of law, Hungary and Poland are refusing for the time being to grant their green light – essential – to a decision authorizing the EU to go into debt to finance the recovery plan. The text must be approved by the Twenty-Seven before being ratified by all the national parliaments.

However, according to a diplomatic source, the formulations of the German compromise could greatly complicate this ratification by certain national parliaments attached to the principle of the rule of law and to the prerogatives of the Commission in the matter, starting with that of the Netherlands.

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