Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

EU leaders finally approve coronavirus stimulus package after Hungary and Poland lift their veto

EU leaders finally approve coronavirus stimulus package after Hungary and Poland lift their veto

The latest European impasse over a much-needed stimulus package has finally been overcome, meaning cash-strapped countries will soon get access to a historic level of funding.

In the wake of the coronavirus pandemic, European nations agreed in July to raise 750 billion euros ($908 billion) from public markets and use that money to support the economic recovery across the 27-member region. This was a significant move and came on top of 1.074 trillion euros ($1.3 trillion) to be spent between 2021 and 2027.

However, the implementation of this agreement had been at risk after Hungary and Poland vetoed linking the disbursements of the funds with compliance of European values — also known as the rule of law mechanism. Both nations have been under investigation for years for allegedly influencing the appointment of top judges and discouraging press freedom — actions that go against European law.

After “long negotiations” over the last few weeks, the 27 EU countries agreed to go ahead with this link, but with a caveat: The two countries will be able to ask for an opinion from the European Court of Justice, the EU’s judicial body, so this institution can rule on whether making the disbursements conditional on the rule of law respects the European treaties.

However, it is likely that it will take more than a year for the ECJ to give its opinion, meaning that the two countries are left off the hook in the meantime. This is particularly relevant for Hungarian Prime Minister Viktor Orban, who faces elections in 2022.

The compromise sounds complex but it allows the EU to go ahead with making funds available quickly, while also keeping them conditional on this respect for European values — even if the latter is only likely to kick in at a later stage.


Speaking in Brussels on Thursday, Poland’s Prime Minister Mateusz Morawiecki said the compromise allowed the EU to “avoid arbitrary and political motivated decisions.”

Hungary’s Prime Minister Viktor Orban said the deal was a “victory of common sense.”

However, the deal has raised some doubts about its legality and effectiveness.

“You cannot save the Rule of Law by breaking the law,” Guy Verhofstad, a European lawmaker, said on Twitter.

Lawmakers at the European Parliament have to approve the compromise before it becomes official practice.

“Hungary/Poland lift their veto on EU budget, after being reassured that new Rule of Law mechanism won’t be applied to them until a judgment of ECJ will define ‘methodology’ to be applied. This is not only unprecedented, but also legally questionable,” Alberto Alemanno, professor of European law at H.E.C. Business School in Paris, said on Twitter on Thursday.

There are also doubts about when the link between the funds and the rule of law would actually kick in.

Different member states and lawmakers want sanctions to be applied retroactively from January 2021, which could hurt Hungary and Poland for their ongoing standoff with the European Commission over alleged breaches of European law.


AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
U.S. and Hungarian Officials Talk About Economic Collaboration and Sanctions Strategy
Technology Giants Activate Lobbying Campaigns Against Strict EU Regulations
Pope Francis Admitted to Hospital in Rome Amid Increasing Speculation on Succession
Zelensky Calls on World Leaders to Back Peace as Tensions Rise with Trump
UK Leader Keir Starmer Calls for US Security Guarantee in Ukraine Peace Deal
NATO Chief Urges Higher Defense Expenditure in Europe
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advancement.
Rubio Touches Down in Riyadh Before Key U.S.-Russia Discussions
Students in Serbian universities Unite to Hold Coordinated Protests for Accountability.
US State Department Removes Taiwan Independence Statement from Website
Abolishing opposition won't protect Germany from Nazism—this is precisely what led Germany to become Nazi!
Transatlantic Gold Rush: Traders Shift Bullion in Response to Tariff Anxieties and Market Instability
Bill Ackman Backs Uber as the Company Shifts Towards Profitability
AI Titans Challenge Nvidia's Supremacy in Light of New Chip Innovations
US and Russian Officials to Meet in Saudi Arabia Over Ending Ukraine Conflict. Ukraine and European leaders – who profit from this war – excluded from the negotiations.
Macron Calls for Urgent Summit as Ukraine Conflict Business Model is Threatened
Trump’s Defense Secretary: Ukraine Won’t Join NATO or Regain Lost Territories
Zelensky Urges Europe to Bolster Its Military in Light of Uncertain US Backing
Chinese Zoo Confesses to Dyeing Donkeys to Look Like Zebras
Elon Musk is Sherlock Holmes - Movie Trailer Parody featuring Donald Trump's Detective
Trump's Greenland Suggestion Sparks Sovereignty Discussions Amid Historical Grievances
OpenAI Board Dismisses Elon Musk's Offer to Acquire the Company.
USAID Uncovered: American Taxpayer Funds Leveraged to Erode Democracy in Europe Until Trump Put a Stop to It.
JD Vance and Scholz Did Not Come Together at the Munich Security Conference.
EU Official Participates in Discussions in Washington Amid Trade Strains
Qatar Contemplates Reducing French Investments Due to PSG Chief Investigation
Germany's Green Agenda Encounters Ambiguity Before Elections
Trump Did Not Notify Germany's Scholz About His Ukraine Peace Proposal.
Munich Car Attack Escalates Migration Discourse Before German Elections
NATO Allies Split on Trump's Proposal for 5% Defense Spending Increase
European Parliament Advocates for Encrypted Messaging to Ensure Secure Communications
Trump's Defense Spending Goal Creates Division Among NATO Partners
French Prime Minister Bayrou Navigates a Challenging Path Amid Budget Preservation and Immigration Discourse
Steering Through the Updated Hierarchy at the European Commission
Parliamentarian Calls for Preservation of AI Liability Directive
Mark Rutte Calls on NATO Allies to Increase Defence Expenditures
Dresden Marks the 80th Anniversary of the World War II Bombing.
Global Community Pledges to Aid Syria's Political Transition
EU Allocates €200 Billion for AI Investments, Introduces €20 Billion Fund for Gigafactories
EU Recognizes Its Inability to Close the USAID Funding Shortfall Due to Stalled US Aid
Commission President von der Leyen Missing from Notre Dame Reopening Due to Last-Minute Cancellation
EU Officializes Disinformation Code for Online Platforms, Omitting X
EU Fails to Fully Implement Key Cybersecurity Directives
EU Under Fire for Simplification Discussions Regarding Corporate Sustainability Reporting
Shein Encountering Further Information Request from the EU During Ongoing Investigation
European Commission Initiates Investigation into Shein as It Aims at Chinese E-Commerce Regulations
German Officials Respond to U.S. Proposal for Peace Talks with Russia
Senate Approves Robert F. Kennedy Jr. as Secretary of Health and Human Services.
Trump and Putin Engage in Discussions on Ukraine Peace Negotiations Amid Worldwide Responses
Honda and Nissan End Merger Talks
×