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The path to the EU budget and the billions in aid from Corona is free. Heads of state and government agreed on Thursday in Brussels on a compromise on the new rule of law mechanism, according to a spokesman for EU summit leader Charles Michel. announced on Twitter.
In protest against the new procedure to punish violations of the rule of law, Poland and Hungary had blocked decisions on multimillion-dollar financial aid from the Crown and the next long-term EU budget. Meanwhile, the German Presidency of the Council of the EU has negotiated an additional declaration. This has persuaded the two countries to lift their veto against decisions on the long-term EU budget and the billions in aid from the Crown.
The additional statement now defines, among other things, what options Hungary and Poland have to defend themselves against the application of the procedure. One of them is a review by the ECJ. You would probably delay the first use of the procedure for months, if not more than a year. Furthermore, it is once again stipulated that the determination of a violation of the rule of law alone is not enough to cut financial aid from the EU. Therefore, it should be clear that the infringement has a negative impact on the use of EU money. Furthermore, it should be noted once again that heads of state and government must address the issue in disputes.
Without an agreement there would have been an emergency budget
If there hadn’t been an agreement, the EU would only have had a kind of emergency budget from January. Many programs could not have been started. In addition, a way would have to be found to organize the Corona economic stimulus program of up to 750 billion euros without Poland and Hungary. Countries that are suffering a lot from the Crown crisis and at the same time have a debt problem, for example France, Italy, Spain, Portugal and Belgium, depend on aid. The program also leads to a new level of political deepening in the EU. Because for the first time you can now assume your own debts.
The EU countries agreed to the new mechanism in late October against the will of Hungary and Poland. Later, the governments of Budapest and Warsaw vetoed unanimous budget decisions to force changes. They fear that the new process will be used mainly against them. They have long been accused of improperly expanding their influence over the judiciary. In addition, restrictions on freedom of the press and insufficient protection of minorities are criticized.
With Germany holding the Council Presidency, which changes every six months, until the end of the year, Chancellor Merkel is in the spotlight even more than usual at the summit. For almost four weeks, the federal government tried to convince Hungary and Poland to abandon their lockdown on the € 1.8 trillion package consisting of the seven-year budget and the Corona aid package. The package that has now been negotiated is due in large part to Germany’s efforts to reach an agreement.
The head of the EU Commission, Ursula von der Leyen, congratulated the Presidency of the Council of Germany. “Europe is moving forward,” he wrote on Twitter. Federal Finance Minister Olaf Scholz also welcomed the deal. “Europe is showing its ability to act,” declared the SPD politician. “With this financial package, Europe can come out of the crisis with force. It will bring Europe closer.” The deal sent a strong signal, Scholz added. The rule of law applies and is enforced everywhere in Europe.
More ambitious EU climate targets are emerging
The second central theme of the summit, the toughening of the EU climate target for 2030, indicated support from EU circles. The prepared summit declaration states that the EU will reduce its greenhouse gases by 55 percent by 2030, compared to 1990. So far, the target has been minus 40 percent. This would also be an important signal at the international level. However, no decision has yet been made on the climate target. According to diplomats, Poland and other states have asked for more promises of financial aid in the energy transition. Michel put the decision on hold until later that night. The improvement of climate targets every five years is foreseen in the 2015 Paris Climate Agreement. The United Nations expects a new report from Brussels before the end of the year.
Furthermore, the heads of state and government agreed to extend the EU economic sanctions against Russia for six months due to the ongoing conflict in Ukraine. The EU last extended trade and investment restrictions until January 31, 2021 in June, despite billions of dollars in losses for domestic companies. They are now valid until the end of July next year.
As for Brexit, British Prime Minister Boris Johnson was pessimistic overnight that a deal would still be reached in trade talks with the EU. There is a strong possibility that the negotiations will fail and end without a deal, Johnson said. He and EU Commission President Ursula von der Leyen were unable to agree on compromises Wednesday night on outstanding issues.
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