Hungary and Poland vetoed the approval of European Union’s (E.U.)’s budget and recovery package of €1.8 trillion because the budget law included a clause which states that funds would be accessible to those who respect the rule of law.
The rule of law is one of the fundamental values of the E.U., enshrined in Article 2 of the Treaty on European Union. It is also a prerequisite for the protection of all the other fundamental values of the Union, including for fundamental rights and democracy. The core of the rule of law is effective judicial protection, which requires the independence, quality and efficiency of national justice systems.
The vetoed package included a € 750 billion Coronavirus (COVID-19) recovery fund. Without unanimous consent of all the member nations, the E.U. budget and recovery fund cannot be approved. The veto will now be discussed at a meeting of E.U. European Affairs Ministers. This will be followed by a video conference of EU leaders later.
The President of Hungary – Viktor Orbán had sent a note in advance of the meeting, to the Chancellor of Germany – Angela Merkel and the President of France – Emmanuel Macron, quoting that the rule of law clause jeopardises trust between member states.
Earlier in July 2020, the E.U. leaders had first agreed to club together and raise almost €1.8 trillion to spend over the next 7 years, as they try to recover from the financial crisis that were majorly an outcome of the COVID-19.
Taking it to twitter, Secretary of State for International Communication and Relations of Hungary – Zoltan Kovacs tweeted, “Hungary has vetoed the budget, as PM Orbán warned, because we cannot support the plan in its present form to tie rule of law criteria to budget decisions – It runs contrary to the July Council conclusions.”
Reacting on the veto by Hungary and Poland, the Chancellor of Austria – Sebastian Kurz said it is absolutely necessity to link the distribution of European funds to rule of law standards in member states, especially when the sums to be handed out were so vast.
Hungary and Poland are against linking of E.U. budget and recovery fund to respect for the rule of law because they are currently under investigation for undermining the independence of courts, media and non-governmental organisations. If the link remains in place, it would mean both Hungary and Poland will lose access to tens of billions of Euros from E.U. budget and recovery fund.
A member of European Parliament – Manfred Weber tweeted, “The #ruleoflaw is not about one country or about East and West. It is neutral and applies to everybody. If you respect the rule of law there is nothing to fear. Denying the whole of Europe crisis funding in the worst crisis since decades is irresponsible.”
Kovacs also said that Hungary is not to be blamed for leading the E.U. into crisis by exercising its right to veto. He stated that the burden of responsibility rests with those who have given rise to this situation. If approved, the E.U. budget and recovery package was planned to be rolled-out by mid-2021. This veto by Hungary and Poland will now delay the entire distribution.
Meanwhile, a group of European nations, led by Netherlands as well as the European Parliament are mulling an even stronger link that links the access of funds with respect for the rule of law.
