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The European Union has entered a deep institutional crisis after Hungary and Poland blocked the 1.82 trillion euro budget and post-Covid recovery fund. Senior officials of the European bloc say that, for the moment, there is no way out of this crisis, writes Politico.
Even for the EU, which is often seen in situations of political stalemate, this new crisis, which has come about after extensive and difficult negotiations, seems to be too much. The confrontation thus becomes the main point on the agenda of the next meeting of Heads of State and Government of the European Union, which will take place on Thursday, by videoconference.
One possibility would be to postpone the approval of the budget, but the current context, in which most countries are seriously affected by the second wave of the coronavirus pandemic, in which many have already entered a partial or total blockade, and where their economies have come to a standstill makes this extremely difficult.
How the illiberal Viktor Orban took revenge on the European Union
Although the budget has been blocked by Poland and Hungary, many European officials blame Hungarian Prime Minister Viktor Orban, a frequent internal opponent of the EU and its institutions.
“We all know this is a deadlock. We are at a crossroads and no one knows in which direction to take it. We only know that the whole package will not be approved until we have the Hungarians on our side. We will continue to consult, but from a certain point on. , Hungarians will have to act sincerely and in good faith, otherwise we will have big problems ”, said a European official.
Hungary and Poland blocked the recovery package during a meeting of EU ambassadors on Monday, arguing that they made the decision because of the new rule-of-law-based fund allocation mechanism. This measure could be approved because it only needs a qualified majority, not unanimity, as is the case with the budget.
Hungary and Poland thus used their veto power to block the completion of the process by which the European bloc had to build the economic recovery fund in the context of the Covid-19 pandemic. The two countries have also signaled that they will not politically support the multi-year budget, which is scheduled to take effect on January 1.
European officials have warned the governments of the two countries that they are harming their own citizens by doing so, because the recovery fund and budget include tens of billions of euros to get Hungary and Poland back.
The two countries are net beneficiaries of European funds and are among the hardest hit by the second wave of the pandemic, but European officials say Viktor Orban refused to budge even after several personal meetings with German Chancellor Angela Merkel and President. The European Council Charles Michel and several senior officials from France, Italy, Spain or Portugal, other countries seriously affected by the coronavirus pandemic that urgently need such funding.
The EU wants the rule of law. Poland and Hungary consider it “slavery”
Some European officials say the European Union is now paying for not fully resolving this dispute during the July summit, when this economic recovery package was approved. In reaching an agreement then, European leaders agreed that there would be a link between future funding and compliance with the rule of law, but left that link open for interpretation.
“We are not at the end of this epic, we are entering a political phase. But if this blockade continues, we run the risk of operating with a very low budget and only essential expenses, without commitments in structural funds, foreign policy and others, “said a European official.
The options for Europeans remain very limited. Even if the 25 heads of state and government in the European Council were willing to please Hungary and Poland, the budget would still need the approval of the European Parliament, where long and difficult negotiations have taken place to adopt the linking mechanism. of law enforcement. Even some MEPs have seen the current solution as a compromise solution, and its complete removal would be even more problematic to get budget support in the EP.
Theoretically, the economic recovery plan could be adopted outside the budget, through an intergovernmental agreement between the other Member States, a possibility explored in spring by the European Commission, but finally rejected because it would have led to similar complications and difficulties. big.
European institutions and many EU governments have complained for years that Hungary and Poland are falling into authoritarianism. In turn, the Polish and Hungarian leaders complain that they are “blackmailed” by Brussels:
“There is no clear criterion or definition of the rule of law, so they cannot be used as a concrete instrument of sanction,” the Hungarian Justice Minister told reporters.
“This is a discussion that will determine whether Poland is an independent nation in the European Community or whether it will be institutionally and politically enslaved. It is not about the rule of law, but about institutional and political slavery,” said the Polish Minister of Justice.
The recovery fund, essential for Europe’s economic recovery, could face even more obstacles
The road to approval of the budget and recovery fund will be long, tumultuous and full of obstacles. The adoption of the seven-year multiannual budget will require the approval of the European Parliament and the unanimous support of the European Council. The process by which the recovery fund will be made possible also needs unanimous support in the Council and must also be ratified by the national parliaments of the states.
Even if European officials somehow manage to persuade Hungary and Poland to give up their intransigent position, the parliaments in Budapest and Warsaw could continue to act by blocking the financing mechanism of the recovery fund. The national parliaments of countries such as Finland could also block these deals if they consider that Poland and Hungary have received too many concessions regarding the rule of law.
Germany makes a direct appeal to the two countries: “This is the money that many countries urgently need.”
Germany, current holder of the rotating presidency of the Council of the European Union, has asked Hungary and Poland to withdraw the opposition and approve the EU budget, as well as the economic recovery fund. However, the Warsaw government remains in its position and announces that it is awaiting a compromise solution.
Michael Roth, Secretary of State for European Affairs in the German government’s Foreign Ministry, said that “our current period no longer allows vetoes, but quick measures in a spirit of solidarity.” Citizens of EU member states have the support of the institutions, the German official stressed, warning that everyone will pay a high price if the EU budget and the Economic Recovery Fund are not quickly approved.
Heiko Maas, the German foreign minister, said he was confident that a compromise solution would be reached. “It is a lot of money, which many countries of the European Union urgently need and expect, so a quick solution is needed. I am convinced that we will find a solution, ”said Heiko Maas.
The Polish government announced on Tuesday that it expects a compromise solution from Brussels. “We are waiting for new proposals, consistent with the EU treaties,” said Piotr Muller, spokesman for the Warsaw government. “Poland wants the budget agreement to be approved as soon as possible, but at no cost in terms of national sovereignty,” said Szymon Szynkowski, secretary of state at the Warsaw government’s Foreign Ministry.
Editor: Adrian Dumitru
