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The European Union has entered a deep institutional crisis after Hungary and Poland blocked the budget of 1.82 trillion euros and the fund for the post-Covid recovery. Top officials of the European bloc say that, for the moment, there is no way out of this crisis, writes Politico.
Even for the EU, which often finds itself in political stalemates, this new crisis, which has come after extensive and difficult negotiations, seems to be too much. The comparison thus becomes the central point on the agenda of the next meeting of the Heads of State and Government of the European Union, which will take place on Thursday, via videoconference.
One possibility would be to postpone the adoption of the budget, but the current context, in which most countries are severely affected by the second wave of the coronavirus pandemic, in which many have already entered partial or full blockade and in which their economies have been paralyzed, makes this extremely difficult.
How the illiberal Viktor Orban took revenge on the European Union
Although the budget has been blocked by Poland and Hungary, many European officials blame Hungarian Prime Minister Viktor Orban, a frequent internal opponent of the EU and its institutions.
“We all know that this is a dead end. We are at a crossroads and no one knows which way to take it. We only know that the whole package will not be approved until we have the Hungarians on our side. We will continue to consult, but from a certain point. the Hungarians will have to act with sincerity and good faith, otherwise we will have big problems, “a European official said.
On Monday, Hungary and Poland blocked the recovery package at a meeting of EU ambassadors, saying they made the decision due to a new rule of law mechanism. This measure could be approved because it only needs a qualified majority, not unanimity, as in the case of the budget.
Hungary and Poland then used their veto power to block the completion of the process by which the European bloc was to build the economic recovery fund in the context of the Covid-19 pandemic. The two countries also signaled that they will not politically support the multi-year budget, which is expected to come into effect on 1 January.
European officials have warned the governments of the two countries that they are harming their citizens in this way, as the recovery fund and budget include tens of billions of euros for the recovery of Hungary and Poland.
The two countries are net beneficiaries of European funds and are among those hit hard by the second wave of the pandemic, but European officials say Viktor Orban refused to give up even after several personal meetings with German Chancellor Angela Merkel and the president. Charles Michel and several senior officials from France, Italy, Spain or Portugal, other countries severely affected by the coronavirus pandemic that are in dire need of such funding.
The EU wants the rule of law. Poland and Hungary consider it “slavery”
Some European officials say the European Union is now paying for not fully resolving this dispute at the July summit, when this economic recovery package was approved. In order to reach an agreement then, European leaders agreed that there would be a link between future funding and respect for the rule of law, but they left that link open for interpretation.
“We are not at the end of this epic, we are entering a political phase. But if this block continues, we risk operating with a very low budget and with only essential expenses, without commitments on structural funds, foreign policy and more,” he said. a European official.
Europeans’ options remain very limited. Even if the 25 heads of state and government of the European Council were willing to please Hungary and Poland, the budget would still need the approval of the European Parliament, where long and difficult negotiations took place to adopt the liaison mechanism law enforcement funds. The current solution has also been seen by some MEPs as a compromise solution and its complete elimination would be even more problematic to gain EP budget support.
Theoretically, the economic recovery plan could be adopted off-balance sheet, through an intergovernmental agreement between the other member states, a possibility explored in the spring by the European Commission, but ultimately discarded because it would have led to similar complications and difficulties. great.
European institutions and many EU governments have been complaining for years about Hungary and Poland slipping into authoritarianism. In turn, Polish and Hungarian leaders complain of being “blackmailed” by Brussels:
“There is no clear criterion or definition of the rule of law, so they cannot be used as a concrete sanction tool,” the Hungarian justice minister told reporters.
“This is a discussion that will determine whether Poland is an independent nation in the European Community or whether it will be institutionally and politically enslaved. It is not about the rule of law, but about institutional and political slavery,” said the Polish Minister of Justice. .
The recovery fund, essential for Europe’s economic recovery, could face even more obstacles
The road to adoption of the budget and the recovery fund will be long, tumultuous and full of obstacles. The adoption of the seven-year multiannual budget will require the approval of the European Parliament and the unanimous support of the European Council. The process through which the recovery fund will be made possible also needs the unanimous support of the Council and must also be ratified by the national parliaments of the states.
Even if European officials somehow manage to persuade Hungary and Poland to give up their uncompromising stance, the parliaments of Budapest and Warsaw could continue to act by blocking the way the recovery fund is financed. National parliaments in countries like Finland could also block such agreements if they believe that Poland and Hungary have received too many concessions on the rule of law.
Germany makes a direct appeal to the two countries: “This is money that many countries urgently need”
Germany, the current holder of the rotating presidency of the Council of the European Union, called on Hungary and Poland to renounce the opposition and approve the EU budget and the economic recovery fund. However, the Warsaw government remains in place and announces that it is awaiting a compromise solution.
Michael Roth, state secretary for European affairs at the German government’s foreign ministry, said that “our current period no longer allows vetoes, but swift measures in a spirit of solidarity”. Citizens of EU member states are counting on the institutions’ support, the German official stressed, warning that everyone will pay a high price if the EU budget and the Economic Recovery Fund are not approved quickly.
Heiko Maas, the German foreign minister, said he was confident that a compromise solution would be reached. “This is a lot of money, which many EU countries urgently need and are waiting for, so a quick solution is needed. I am convinced that we will find a solution,” said Heiko Maas.
The Polish government announced on Tuesday that it expects a compromise solution from Brussels. “We are waiting for new proposals, consistent with the EU treaties,” said Piotr Muller, spokesman for the Warsaw government. “Poland wants the budget agreement to be approved as soon as possible, but at no cost in terms of national sovereignty,” said Szymon Szynkowski, state secretary in the Warsaw government’s foreign ministry.
Publisher: Adrian Dumitru
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