[ad_1]
According to the Financial Times, it would fool the veto with a special solution.
The European Commission is considering a special solution, inspired by the recovery fund, to avoid the veto of Hungary and Poland on the adoption of the budget, writes the Portfolio according to the Financial Times (FT).
A senior EU official told France Télécom that “this bridging solution is currently expected to reproduce the effects of the original package.” According to the journalist, the solution could be the installation of a special purpose vehicle (SPV) for emergencies, as provided for in article 122 of the EU Treaty.
The Portfolio writes that Member States would provide collateral to this SPV and thus could take loans on the market in the form of bond issuance and then distribute the money raised among Member States. This form would be similar to the Euro Zone Permanent Crisis Management Fund (ESM), which is still operational. However, the main advantage of the original design would be that it would be based on a generous 7-year EU budget of € 7 billion, which would not work with the SPV solution.
The document notes that the start of the EU budget requires the support of the governments of Hungary and Poland, but there is also a solution: Ursula von der Leyen He said that if by December 7 they would go to an emergency budget. All this suggests that the Member States do not want to allow Hungary and Poland to veto it.
[ad_2]
