EU Budget Blocked by Hungary and Poland: "Rule of Law Clause Not Acceptable"

Budget and COVID-19 Recovery Fund Approval Blocked... Unanimous Consent Required for Fund Utilization
To Be Discussed Later at Ministerial and Summit Meetings... Differences in Opinions May Take Some Time to Resolve

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The European Union (EU) long-term budget plan, which includes support funds for the novel coronavirus infection (COVID-19), has been stalled by Hungary and Poland. They have cast vetoes, objecting to the inclusion of a rule of law clause as a condition for receiving EU funds, causing last-minute difficulties.

On the 16th (local time), according to BBC and others, ambassadors from the 27 EU member states met in Brussels to discuss the approval of the 2021?2027 EU long-term budget plan worth 1.8 trillion euros and the COVID-19 recovery fund. This meeting was to negotiate the EU support funds, including the COVID-19 recovery fund, which member state leaders agreed upon after marathon negotiations in July.

At this meeting, Hungary and Poland exercised their veto rights over the conditions for fund disbursement. The inclusion of compliance with the rule of law as a condition was strongly opposed by the right-wing populist governments of the two countries. They cited the ongoing official investigations by the EU into the undermining of the independence of their judiciaries, media, and non-governmental organizations as reasons for exercising their vetoes.

If unanimity is not reached, the budget plan and COVID-19 recovery fund cannot be approved. The EU plans to discuss this issue at the ministerial meeting on the 17th and the summit on the 19th, but it is expected to take some time to resolve the differences. Hungary and Poland have continuously raised this issue, but some countries, including the European Parliament and France, insist on including this condition, maintaining a hardline stance.

Austria's Chancellor Sebastian Kurz emphasized that including the condition of compliance with the rule of law when disbursing massive EU support funds is absolutely necessary. Cl?ment Beaune, France's Secretary of State for European Affairs at the Ministry of Foreign Affairs, said on Twitter, "Hungary and Poland have blocked the passage of the EU budget, but our commitment to economic recovery and the rule of law remains unwavering," adding, "We will find a solution within weeks, and France will actively participate."

This content was produced with the assistance of AI translation services.