Budapest and Warsaw are blocking the approval of the budget and the associated fund with a total volume of over 1.8 trillion euros (approximately 48 trillion crowns) due to conditionality, which the leaders of the countries agreed at the July summit.
Money from the budget for the period 2021 to 2027 and from the emergency crisis aid fund should be available only to those states whose judicial authorities guarantee the independent investigation and prosecution of possible fraud.
However, according to both countries, with which the EU institutions have been conducting proceedings for several years precisely because of fears of restricting the independence of the judiciary or the media, conditionality is not supported by the EU treaties. “We have confirmed that we are standing together. We will not give an opportunity to any efforts to break this cooperation, “said Hungarian Foreign Minister Péter Szijjártó on Monday, who met with his Polish counterpart Zbigniew Rau.
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Other member states are trying to put pressure on Warsaw and Budapest to revoke their veto. Diplomats are talking about greater chances on the part of Poland, which is to be the third largest recipient of money from the reconstruction fund after southern European countries, and it also relies heavily on EU finances to help reduce emissions.
Both countries should take a position by Thursday, say diplomats
In recent days, differing views have emerged among Polish government politicians on a possible concession. Deputy Prime Minister Jaroslaw Gowin said last week that Warsaw could withdraw the veto under certain conditions, even if conditionality remained. However, Prime Minister Mateusz Morawiecki later refused.
Diplomats say Budapest and Warsaw should make it clear by Thursday’s summit whether they are willing to support the budget and the fund. However, French Minister for European Affairs Clement Baune told both countries on Sunday that concessions between the money and the rule of law would not be met. “Our position is clear. We are not sacrificing either the reconstruction fund or the rule of law, “he told the Journal du Dimanche.
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According to him, the emergency fund of three quarters of a trillion euros will be created without the two states, which will lose tens of billions of euros. Politicians from other countries, such as the Netherlands and Italy, express themselves in a similar way.
European Commission officials said last week that the practical implementation of this option would not be difficult and that the fund could be available to the other 25 countries by mid-next year, which included plans for a “full-fledged” package.
On the other hand, the budget cannot be approved without the consent of all 27 states. Therefore, if Hungary and Poland do not reconsider their position, the Union will start operating with a provisional budget from January. While, for example, agricultural subsidies will be maintained, new projects from the Structural Funds will not be financed.
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