November 20, 2020

EU budget deal deadlocked after Hungary and Poland veto

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The Gist

The two countries are blocking a €1.82 trillion budget deal over rule-of-law stipulations.

The List

  • The EU budget deal includes the rule-of-law mechanism, which would allow for blocking of EU funds in case a country is breaching EU principles. 
  • After the rule-of-law conditionality was approved in Council by a qualified majority, Budapest and Warsaw vetoed the recovery fund on Monday. 
  • The veto complicates the dispersal of badly needed EU funds in countries that were especially hard-hit by the COVID-19 pandemic. 
  • The commission president Ursula von der Leyen  said: “Now we sit down, we negotiate, we listen to what the issues are and we try to solve them.”
  • Poland and Hungary have been previously subject to EU disciplinary procedures over the rule of law. 

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