The EU Gives Poland and Hungary 24 hours to Lift their Veto

Hungary and Poland are breaking the patience of the rest of their 25 EU partners. Their veto of the recovery fund and the community multi-annual budget for 2021-2027, a total of more than 1.8 trillion euros, is causing a lot of trouble. Europe needs the stimulus to face the pandemic. Additionally, it is trying to settle other complicated cases, working hard to agree on the future commercial relationship with the United Kingdom.

For this reason, the EU asked Budapest and Warsaw to lift their blockade this Tuesday, at the latest. If they do not, they will not be part of the recovery fund of 750,000 billion euros. Thus, neither will receive European funds that largely benefit them.

Diplomatic sources commented that the EU needs to agree with Hungary and Poland on Monday or Tuesday at the latest. If they do not do it, they will have to go to scenario B, which implies creating an alternative that replicates the recovery fund’s effects without the two rebels.

The EU prepares for a veto during the summit

The leaders of Hungary and Poland, Viktor Orban and Mateusz Morawiecki, have insisted that they will not give their blessing. They will only agree if the rule of law conditionality attached to EU funds becomes substantially diluted or eliminated. 

The agreement involves preparing a statement that limits the application of this conditionality only to the cases included in the mechanism. Such are cases of corruption or problems with the independence of justice. It is not applied arbitrarily to punish these two countries for other issues that they disagree on. Like for example, the rejection of refugees.

However, the final agreement included that any reference to the judicial system will be considered an intrusion by both countries.

Hungarian Foreign Minister Peter Szijjarto asserted that they were strong in their opposition after meeting his Polish counterpart. Szijjarto stated that they support each other. Moreover, they will not give space to any effort that tries to break this cooperation.

The EU has already approved to implement a relatively quick alternative to the recovery funds without either Hungary or Poland. If both members continue their veto, this alternative will be used.

The Hungarian and Polish veto is expected. The EU prepares to deal with it during the summit this Thursday and Friday. European leaders will also discuss the response to the pandemic, relations with Turkey or the United States, and Brexit.