Poland and Hungary again challenged any mechanism linking the payment of EU budget funds to respect for the rule of law on Tuesday 13 October. The Scandinavian countries, as well as Belgium and the Netherlands, have, on the contrary, called for a strong mechanism of conditionality in the area of the rule of law.
These differences further complicate the work of the German Council Presidency, which is due to negotiate a final agreement with the European Parliament on Wednesday 14 October on the EU’s Multiannual Financial Framework (MFF) for 2021-2027 and the European Recovery Plan.
The European Parliament is calling for an effective mechanism to protect the budget against any failure to respect the rule of law.
At the ‘General Affairs’ Council, Polish Minister Konrad Szymański said: “The rule of law mechanism remains an unresolved issue. We cannot accept a mechanism which is not legally sound, which circumvents the Treaties, which undermines the interinstitutional balance and which can be used to exert political pressure on certain Member States.”
Hungarian Minister Judit Varga regretted that Parliament and some EU countries want to reopen the EU leaders’ 21 July agreement, introducing “political and ideological demands”.
Speaking also on behalf of Denmark and Finland, Swedish Minister Hans Dahlgren, on the contrary, stressed the importance of an agreement including “effective conditionality” on respect for the EU’s democratic values.
The Netherlands, also representing Belgium and Luxembourg, considered that “a strong conditionality mechanism for the rule of law is essential for the functioning of the EU”.
In the light of these hard-to-reconcile positions, German State Secretary for European Affairs Michael Roth admitted that the debate was “very delicate”. But he hoped that an agreement could be reached if all parties are “ready to make concessions”.
First trilogue negotiations (Parliament, EU Council and Commission) took place on Monday 12 October on this link between the EU budget and the rule of law. Divergent positions on the scope and voting procedure were reiterated. Several trilogues are expected to take place over the next few days.
“We want an operational instrument to protect the rule of law within the framework of the European budget. A negotiating offer is on the table. On this basis, we are able to reach a good compromise. For this to happen, Parliament and the EU Council must take a step towards each other”, summarised Mr Roth at the final press conference.
Discrepancies with Parliament on programme envelopes. Mr Roth felt that Parliament was treading on somewhat “dangerous ground”, wanting increased funding for 15 EU programmes. He saw a risk of “derailing” the negotiations to finalise the whole package. Mr Roth warned Parliament about the consequences of this blockage.
Updated offer from Parliament. In the run-up to the 14 October negotiations, Chair of the Parliament Committee on Budgets Johan Van Overtveldt (ECR, Belgium), in a letter to the German Council Presidency, presented an updated offer on requests for increased funding for EU flagship programmes.
This is a proposal to finance the latest compromise offer by MEPs, which amounts to €39 billion.
It consists of an increase in the ceilings, as well as a shift of €13 billion in the financing costs of the European Recovery Plan beyond the MFF ceilings.
In a spirit of compromise, MEPs are taking a further step towards the EU Council by limiting the necessary increase in the ceilings to €9 billion.
To consult the letter: https://bit.ly/2GNzXvA (Original version in French by Lionel Changeur)