Germany presents plan to end EU budget blockade by Hungary, Poland

 

Germany presents plan to end EU budget blockade by Hungary, Poland

 

Compromise suggests scheme to link payouts to rule of law would be used only after court ruling.

The proposal will be discussed at the European Council on Thursday and Friday

 

BY LILI BAYER

December 9, 2020 5:53 pm

https://www.politico.eu/article/german-presidency-proposes-rule-of-law-compromise-text/

 

A new scheme linking EU funding to rule-of-law criteria may not be applied until the bloc's top court has ruled on its legality, according to a compromise plan to end a blockade by Hungary and Poland of the EU's budget and coronavirus recovery package.

 

The text is contained in draft conclusions prepared by the German presidency of the Council of the EU for a summit of EU leaders taking place on Thursday and Friday.

 

Hungary and Poland have argued that the rule-of-law mechanism is designed to unfairly target them — accusations rejected by the European Commission and other EU members. The German text seeks to offer enough reassurance to Budapest and Warsaw to get them to drop their objections.

 

"The application of the conditionality mechanism under the Regulation will be objective, fair, impartial and fact-based, ensuring due process, non discrimination and equal treatment of Member States," the proposed conclusions state.

 

According to the draft text, "should an action for annulment be introduced with regard to the Regulation," the European Commission's guidelines for applying the mechanism "will be finalised after the judgement of the Court of Justice so as to incorporate any relevant elements stemming from such judgement."

 

"Until such guidelines are finalised, the Commission will not propose measures under the Regulation," the text says.

 

The text states that a member country concerned could turn to the European Council, which would "strive to formulate a common position on the matter."

 

Under the proposed compromise, the rule-of-law mechanism would only apply to the new 2021-2027 EU budget and recovery fund, and thus not impact payments connected to projects from the current budgetary period.