European Union leaders expressed their wish, in a videoconference meeting on Thursday 19 November, to avoid escalation and to find a compromise in the coming weeks to allow Poland, Hungary and Slovenia to lift their blockade on the EU 2021-2027 Multiannual Financial Framework (MFF) and the Recovery Plan.
These three countries refuse to approve this ‘package’, which was bitterly negotiated among the EU27 and with the European Parliament, because of the draft regulation, which they dispute, on the mechanism linking European funds to respect for the Rule of law.
The debate on the subject lasted about 20 minutes, as the format of the meeting did not lend itself well to the search for a political solution.
The EU27 hope to find a favourable outcome to the problem at the next European Council meeting in Brussels on 10 and 11 December.
Charles Michel, the President of the European Council, indicated that he would conduct “consultations in different formats to prepare for the December summit”. It is up to the German Presidency of the EU Council to lead the negotiations, with the support of the European Commission, he said. He also added, “We’re going to keep working. The magic of the EU is succeeding in finding solutions even when you think it is impossible.”
The President of the European Commission, Ursula von der Leyen, confirmed that the European institution is working “with the German Presidency to find a solution” on conditionality in the area of the Rule of law. “Millions of Europeans are waiting for our help”, she added.
Portuguese Prime Minister António Costa said he expected the problem caused by the Polish-Hungarian veto to be resolved as early as December. “The current rotating Presidency will continue negotiations to break this deadlock”, he said.
Angela Merkel demonstrates caution. German Chancellor Angela Merkel has advocated dialogue. “As Presidency of the EU Council, we will continue to discuss with Hungary and Poland and see what we can do to get their agreement”, she said. At the same time, she described the “agreement reached with the European Parliament and the mechanism on the Rule of law as a very good compromise”.
Merkel said that the Slovenian Head of Government, Janez Janša, had called on all Member States to “ work towards a compromise, which is, of course, in the interest of the German EU Council Presidency”.
As the problem is particularly delicate, she preferred not to “speculate at this stage on solutions”.
Several options on the table. EU leaders do not intend to reopen discussions on the text on the Rule of law mechanism.
“It remains to be seen what clarifications can be made”, a European source said on Wednesday 18 November. For this source, it would be possible to ensure that the State against which the mechanism is brought could have its rights of defence respected, “that it could, in particular, have recourse to the Court of Justice of the EU”. “In fact, this is the case, but perhaps it needs to be clarified that it is”, the source said.
The idea would also be to convince recalcitrant countries that legal guarantees exist and that this arrangement is not intended to circumvent the treaty.
Other options are reportedly being considered, including enhanced cooperation with 25 countries, or even an intergovernmental agreement as a last resort to secure the EU Recovery Plan. It is impossible, however, to make an EU budget that is not approved by all 27, as it is the counterpart of the internal market.
Without an agreement on the MFF, the Union would be obliged to operate, at the beginning of 2021, using the system of ‘provisional twelfths’. This consists of maintaining certain current expenditure (administrative expenditure, direct payments), but in particular of discontinuing cohesion policy appropriations, from which Poland and Hungary benefit greatly. (Original version in French by Lionel Changeur, with the editorial staff)