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In our other Government Info news today, we reported in various posts about how Gergely Gulyás, the Prime Minister, answered questions about the political veto of the Hungarian and Polish governments on Monday on the rule of law mechanism, the budget of the EU and the recovery fund. His message is that
If the mechanism is not relaxed, the government will not yet accept the other two budgets, so they will not be able to start, requiring the unanimous support of all member states.
Gulyas has repeatedly pointed out that the government is not particularly bothered if the recovery fund does not start (we lose it), but of course wants to help overcome troubled debt in troubled southern states (also mentioned near bankruptcy) . NextGenerationEU used the phrase “if accepted by some miracle” for one of the questions about the possibilities of establishing NextGenerationEU.
In the meantime, he recalled that while the EU Treaty required the EU to have a new budget (although he mentioned that it could take between 1 and 2 years for unanimous approval to be achieved), absolutely necessary. ‘ Then he intuited that the government would not see a tragedy even if the 2021-2027 budget could not begin next January either, since then the union’s financing would continue within the framework of the 2020 budget. He put it this way: “There is money for programs funded so far “, but as the Portfolio wrote the other day: in practice, this means that while agricultural resources are expected to arrive in Hungary from 2021 (if the entry into force of the rule of law mechanism does not reduce its disbursement), Until then, we cannot count on the cohesion resources until the sectoral legislation is in force, and this would hurt and miss many.
According to Goulash The government would only consider a strong weakening of the rule of law mechanism acceptable to support the other two regulations in return. A strong softening would mean a complete dismantling of the rule of law and would focus only on the orderly and efficient spending of the EU’s budgetary resources, and this approach would support even tighter control by the government, but not that the rule of law EU funds could be sanctioned based on other decisions of the Hungarian government.
“Hungary has solid feet” financially, as it was able to raise foreign currency bond funds at an interest rate of half a percent last week, we do not need the German venture community for good borrowing opportunities: the minister recalled and reacted to approaches that the financial situation of the state would be difficult. and therefore the government will reconsider in a veto case.
As in the recent article by György Soros, Gulyás also wrongly indicated at the press conference that the veto had already taken place, that is, decisions had been made on Monday. In fact, as we wrote then: only the political presidency asked the member states for a political resolution, which therefore did not take a formal and legally binding decision, but simply put the attitude of the member states to the test. Thus, as the Hungarian government emphasized at the time: a decision has not yet been made, and negotiations are now taking place in the background so that the budget package can be launched within the framework of some kind of compromise.
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