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EU leaders have resolved a bitter dispute with Poland and Hungary to salvage the bloc’s historic coronavirus recovery plan, but they argued overnight and into this morning about fighting climate change.
Hungary and Poland had blocked the European budget of 1.8 trillion euros and the coronavirus recovery package in an attempt to link the disbursement of funds with respect for the rule of law.
The standoff ran the risk of delaying the recovery fund until next year, just as a second wave of the coronavirus pandemic was hitting the European economy, but leaders reached a compromise that allowed the package to pass.
“Today’s agreement shows that perception trumps selfishness. With this financial package, Europe can powerfully emerge from the crisis,” German Finance Minister Olaf Scholz said in a statement.
“We have defended Hungary’s interests. D-Day was a success!” Hungarian Prime Minister Viktor Orban said.
His Polish counterpart Mateusz Morawiecki said: “We fight for our rights. We fight for clarity, we fight for the certainty of the law and we fight for the EU treaty so that they are not circumvented by secondary law.”
Under the agreement, the Polish leader explained, the rule of law mechanism would be limited to ensure that EU funds are spent correctly according to precise criteria and do not touch on social issues such as abortion, LGBT rights or migration policy.
Both Poland and Hungary are major recipients of EU budget cash, and critics see the new mechanism as a way to stem the steady slide toward authoritarianism in those countries.
Both governments have been accused by Brussels of pushing back democratic freedoms, in particular judicial independence in Poland and freedom of the press and civil society in Hungary.
Treat the #MFF and recovery package #NGEU
Now we can start implementation and rebuild our economies.
Our historic recovery package will drive our green and digital transitions. #EUCO
– Charles Michel (@eucopresident) December 10, 2020
Germany, which holds the rotating presidency of the EU, worked hard to break the bottleneck with a legal “statement” that provides greater clarity on how the rule of law mechanism would work.
With the budget row out of the way, the focus could turn to Brexit, although leaders were not expected to discuss the talks in depth during the two-day summit.
Britain and the EU have said they will decide on Sunday whether to go ahead with talks aimed at resolving a post-Brexit trade deal, after British Prime Minister Boris Johnson and EU Chief Ursula von der Leyen failed. save “important differences”.
The EU increased the pressure by publishing its no-deal contingency plan to protect air and road travel and fishing rights just three weeks before the year-end deadline, as the two sides’ negotiators resumed talks. in Brussels to find a way forward.
Turkey sanctions
The marathon summit also decided to draw up a list of Turkish targets for sanctions for its clash over energy resources with EU members Greece and Cyprus in the eastern Mediterranean.
Turkey has been challenging Greece for maritime territory in the region by repeatedly sending a gas exploration ship into Greek waters.
France, Greece and Cyprus are pushing for strong action against Turkey, but other EU nations, such as Germany, Italy and Poland, are opposed to imposing comprehensive sanctions or an embargo on a NATO member.
“The council adopted sanctions on Turkey’s ‘unilateral actions and provocations’,” French Minister for European Affairs Clement Beaune tweeted.
The leaders agreed to a tiered approach, with new names of individuals and companies added to a blacklist and the threat of supplementary sanctions kept in reserve if Turkey does not change course.
Weather
The climate debate dragged on until the early hours of Friday, as the 27 EU members were unable to reach an agreement to increase the bloc’s goal of cutting emissions.
The hope is a 55% reduction in European emissions by 2030 from 1990 levels and carbon neutrality by 2050, but some countries like Poland disagree on how to get there.
To avoid a Polish veto, the bloc could agree to a collective commitment to reduce emissions that would not place the burden on individual nations.
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