Requests from Hungary and Poland to amend the agreement on the mechanism linking the disbursement of EU funds to the rule of law are paralysing the ongoing budgetary debates.
This emerged from the discussions held on Friday, 27 November, at the level of the Committee of Permanent Representatives of the Member States to the EU (Coreper), after the German Presidency of the Council had reported on the state of negotiations on the package consisting of the Multiannual Financial Framework (MFF) 2021-2027, the Economic Recovery Plan and the text on conditionality in the area of the rule of law.
The Hungarian Prime Minister, Viktor Orbán, and his Polish counterpart, Mateusz Morawiecki, presented a declaration the day before, setting out the subjects to be renegotiated in this text (see EUROPE 12610/1).
Poland and Hungary want to “limit” as much as possible the possibilities of suspending EU funds. They believe that if a genuine mechanism for the protection of the rule of law were to be put in place, then the treaties would have to be reformed to include it (which would require unanimity).
However, the delegations which intervened in Coreper on Friday, after the interventions of Poland and Hungary, reiterated their opposition to any reopening of the dossier on this proposal which was the subject of a compromise between the three EU institutions.
The German Presidency of the Council is reported to have pointed out at Coreper that, despite discussions with Hungary and Poland, there has been no progress on the current deadlock. It remains committed to finding a solution.
The Polish delegation had reiterated its concerns about the current text on 'rule of law conditionality', which, in its view, did not offer sufficient legal certainty. Poland, however, is reported to have stressed its wish to reach an agreement as soon as possible.
Several Member States (Italy, Spain, Portugal, France, the Netherlands, etc.) have reportedly reaffirmed their support for the package negotiated by the German Presidency with the European Parliament, including the 'rule of law mechanism'. Some delegations would have asked Hungary and Poland to undertake to find, together with the German Presidency of the Council, a solution which did not involve amending the text on cross-compliance.
Viktor Orbán said on Friday that Hungary's position is “solid as a rock”. Mateusz Morawiecki, for his part, reiterated to German Chancellor Angela Merkel that his country would exercise its veto on the MFF and the Recovery Plan. He added that he expected further discussions in order to find a solution to guarantee the rights of all Member States and the respect of the Treaties.
A Commission spokesperson confirmed to the press on Friday that the President, Ursula von der Leyen, had received another letter from the Polish Prime Minister concerning the debate on the conditionality mechanism.
On the substance, “we believe that the conditionality mechanism that has been adopted corresponds to the July agreement of the European Council. We believe (...) that it has mechanisms in place to ensure that it is applied fairly and that measures taken under this regulation would be subject to the supervision of the European Court of Justice”, the spokesman said.
On Tuesday,1 December, the German Council Presidency will host an informal meeting of EU Affairs Ministers. The subject of the MFF could be raised.
2021 budget. The representative of the Commission would also have mentioned, at Coreper, the consequences of the current deadlock on the MFF 2021-2027 ('provisional twelfths') and on the 2021 budget. The end of the conciliation period between the Council and Parliament on next year's budget expires on 7 December (Parliament must endorse the 2021 budget before the end of the year). A trilogue on the 2021 budget will take place on 3 December, before a meeting of the Conciliation Committee the following day. (Original version in French by Lionel Changeur)