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The EU actually wanted to decide on a € 1.8 trillion financial package for the next seven years. But the two member states, Hungary and Poland, vetoed – in protest against a commitment to the rule of law.
Polish Prime Minister Mateusz Morawiecki (left) and Hungarian Prime Minister Viktor Orban in a meeting with the European Commission on 24 September 2020.
Hungary and Poland had already verbally armed themselves. There is a threat of the EU becoming a “second Soviet Union”, Hungarian Prime Minister Viktor Orban said in a radio interview over the weekend. Polish Minister of Justice Zbigniew Ziobro seconded from Warsaw that the question was whether Poland wanted to submit to “political and institutionalized slavery”.
That the two governments were rebellious and that on Monday they would block an EU decision that would have resulted in no less than 1.8 trillion euros, was to be expected. Yet a high-ranking diplomat in Brussels reacted with dismay: “We are facing a serious crisis”.
Because what will happen to the next seven-year budget and to the billions of Corona aid is written only in the stars. A vote on the largest budget and economic stimulus package in EU history has failed for the moment due to a “nem” from the Hungarian and a “never” from the Polish EU ambassador.
The compromise was too vague
The two Member States had vetoed the financial framework and the own resources decision (which allows the Commission to take on large amounts of debt for the first time) to protest against a new procedure to sanction breaches of the rule of law.
This too was voted on Monday without the need for a unanimous decision. The so-called rule of law mechanism, in which funds can be reduced or canceled if EU states restrict the independence of the judiciary or freedom of the press, is a thorn in Budapest and Warsaw’s side.
Hungary and Poland also agreed on a compromise in July which essentially involves the imposition of financial sanctions. In writing, but probably too vaguely, a statement by the summit of all 27 heads of state and government stated that, against the background of the “importance of respect for the rule of law in the EU”, a “cross-compliance rule” to protect the budget and Corona aid package will be introduced.
It was then up to a team of representatives from the German Presidency of the Council of the EU and the European Parliament to work out the details and, after weeks of budget negotiations, a rule of law mechanism was agreed in early November: for the first time time, observers rejoiced, the money from Brussels in the future would become coupled legal compliance. And finally there is a time window for the payment of the urgent crown aid.
An emergency budget threatens
Happy too soon: it has been clear since Monday that the dispute over money and basic values must move to the next stage. According to diplomats, German Chancellor Angela Merkel, EU Council President Charles Michel and EU Commission Head Ursula von der Leyen must now discuss how to proceed. The controversy will therefore likely take place in a videoconference of the heads of state and government scheduled for Thursday.
If the financial package cannot be launched, the EU will only have an emergency budget from next year. Furthermore, aid for the crown could not circulate, which should save countries like Italy and Spain from an economic collapse. The release of the first funds should actually be made possible during the second quarter of 2021. In addition to the resolutions blocked on Monday, an elaborate ratification process is also needed. According to information from the EU Commission, the national parliaments of almost all Member States must also address the issue.
Brussels correspondent Daniel Steinvorth Twitter consequences.
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