EU budget
Just a corona repair fund without Poland and Hungary? "We will not capitulate to a veto"
Annoyance at the Hungarian / Polish blockade leads to the intention to rig the corona recovery fund without them.
Plans to get the EU corona recovery fund on track quickly, without Hungary and Poland if necessary, are becoming concrete. The European Commission has been investigating for some time how this fund can be legally put together with 25 instead of all 27 participating Member States. That could be "quickly and easily", according to a source within the committee.
European Commissioner Paolo Gentiloni (economics) confirmed this wish Friday during an online conference of an Italian think tank. “We will not capitulate to a veto. We are very clear to these Member States: we will continue without them. ”
The governments in Budapest and Warsaw maintain their opposition to the entire EU budget, out of dissatisfaction with agreements made on the link between all EU subsidies and respect for the rule of law. That agreement is a relatively small part of a huge package of 1.8 trillion euros for the next seven years. But the objections of the two countries are so fundamental that they block both the ordinary multi-year budget of over 1,000 billion and the corona recovery fund of 750 billion.
Add-on statement
The irritation among the other Member States about this has increased sharply. The temporary German EU Presidency is doing all it can to get the two countries on board. But statements by Chancellor Merkel, who suggested that everyone in this conflict should compromise, went wrong in many countries - including the Netherlands. According to them, the rule of law agreement is already a compromise, a "lower limit" as Prime Minister Rutte put it.
The European Parliament is also on this line. Watering down the rule of law conditions, which have been approved by a majority of member states, therefore seems unfeasible.
One way of satisfying both countries is an additional statement. This would provide a guarantee that the European Commission will treat all countries equally, and an assurance that these rule of law conditions have nothing to do with EU migration policy, a link established only by Hungarian Prime Minister Orbán. All "open doors," said an EU diplomat, "but if that solves the problem, we'll be happy to write it down".
Veto Bastion
Orbán, however, rejects this "insert" option. At the same time, cracks have appeared in the Polish veto bastion. Deputy Prime Minister Jaroslaw Gowin, who had previously been critical of the veto, said on Thursday that such an additional statement could be a solution. He was whistled back on Friday by Prime Minister Morawiecki, who said the Polish objections have not been resolved.
According to a senior EU official, a corona fund construction of 25 countries can be set up within normal EU decision-making. In that case, Poland and Hungary will seize in addition to the many billions set aside for them according to current plans.
Previously there was a so-called intergovernmental agreement, outside the EU, but that requires a time-consuming ratification process in all member states. One of the alternative options could be for the 25 countries to agree on the necessary national guarantees for the new-style fund.
Emergency budget
This does not remove the Hungarian-Polish veto against the normal EU long-term budget. In the absence of unanimous support for the seven-year budget, the decision will probably be taken next week to set up an emergency budget for the new year. That has only happened once before, in 1988.
Such an emergency budget builds on the past period (2014-2020) and contains only the most essential parts. There will be no new projects for the time being. Agricultural subsidies are largely continuing, but the greatest blows fall in the so-called cohesion funds, for the development of poorer regions. Those subsidies will fall by 50 to 75 percent, something that Poland and Hungary in particular will notice.
In addition, the rule of law mechanism, as a separate agreement, will remain in full force after its last procedural obligations in Brussels. However, to the annoyance of, among others, the Netherlands, EU President Germany is in no hurry to finalize this.
https://www.trouw.nl/buitenland/dan...llen-niet-capituleren-voor-een-veto~b26bf499/