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Poland and Hungary vetoed the decision on the long-term EU budget. This also means that the billions in aid from Corona are undecided. The approval of all EU countries is required for the € 1.8 trillion financial package to come into effect for the next seven years.
Sebastian Fischer, spokesman for the German presidency of the Council of the EU, confirmed on Twitter that attempts to achieve unanimity had failed.
In summer, the EU agreed on the historic financial package: 750 billion euros for the Corona development fund and another 1.1 trillion euros for the multiannual financial framework for the years 2021 to 2027, which, for example, finances grants for agriculture and research programs. Since then, the details have been discussed.
Hungary and Poland had already announced their veto. It does not agree with the envisaged rule of law instrument. The EU Parliament and member states had agreed that EU funds could be reduced in the event of certain violations of the rule of law: for example, when states do not grant the independence of the courts and the media. Hungary and Poland have been criticized for such violations for years.
They could not avoid the rule of law mechanism itself: it passed with a qualified majority, Poland and Hungary were defeated in the vote and then vetoed it.
EU in serious political crisis
With the financial package locked in the middle of the pandemic, the EU is once again in a serious political crisis. According to diplomats, Chancellor Angela Merkel, EU Council President Charles Michel and EU Commission President Ursula von der Leyen will now have to discuss how to proceed. The dispute will likely become the subject of a video conference of heads of state and government scheduled for Thursday. For her, it really should be about better cooperation against the corona pandemic.
If the financial package cannot be launched, the EU will only have an emergency budget from next year. Furthermore, aid from the Crown could not flow, which is supposed to save countries like Italy and Spain from an economic crisis.
Disbursement of the first funds should be possible during the second quarter of 2021. In addition to the resolutions blocked on Monday, an elaborate ratification process is also necessary. According to information from the EU Commission, the national parliaments of almost all EU countries should also be concerned about the issue.
