EU heads of state and government will have to finalise, on Thursday 10 December, the concessions offered to Hungary and Poland on the interpretation of the text linking the disbursement of EU funds to respect for the rule of law.
Acceptance of an interpretative declaration by the European Council on this text would allow Poland and Hungary to finally lift their veto on the EU’s Multiannual Financial Framework (MFF) for 2021-2027 and the EU Recovery Plan.
This set of interpretative guarantees on the regulation on the rule of law conditionality has the advantage of not reopening the compromise text agreed between the EU institutions.
The German Presidency of the EU Council has negotiated draft EU Council conclusions (interpretative declaration) with these two countries, seen by EUROPE, which reaffirm that the mechanism will be applied objectively, impartially and in accordance with the principle of equal treatment.
Poland and Hungary agreed to the draft and the other Member States asked for some time to ‘digest’ the text. Hence the need to put the subject on the agenda of the European Council on Thursday. “The solution must be found within the European Council on ways to reassure the two countries in question”, a European diplomat said.
The declaration calls on the Commission to adopt guidelines on how to implement the Regulation.
EU Court of Justice. An important passage in the draft conclusions would allow Hungary and Poland to save time by introducing an appeal to the EU Court of Justice without the risk of sanctions (suspension of EU funds) during the legal proceedings. “Should an action for annulment be introduced with regard to the regulation, the guidelines will be finalised after the judgment of the Court of justice so as to incorporate any relevant elements stemming from such judgment. Until such guidelines are finalised, the Commission will not propose measures under the regulation”, says the draft statement.
The two countries “will attack the regulation and ask for its annulment”, one diplomat predicts. They want the Court to be able to rule on the legality of the regulation before the first sanctions are imposed on them.
Finally, the declaration refers to the possibility for a Member State under threat of sanctions to take the matter to the European Council for in-depth discussions. “This in no way means a blocking capacity at the level of the European Council; it is not a question of voting at the European Council on the relevance or otherwise of adopting sanctions under the rule of law mechanism”, asserts a European source.
Positive first exchange. The draft statement was presented to delegations on Thursday at a meeting of the Committee of Permanent Representatives of the Member States to the EU (Coreper).
The first exchange of views was “positive among EU ambassadors. A number of constructive questions were asked. The in-depth analysis in the capitals will now begin. The final decision will be taken by the European Council”, an EU diplomat told EUROPE.
In his letter sent to EU leaders, the President of the European Council, Charles Michel, expressed optimism that he was “confident that we can find an agreement on a common package to allow for the swift implementation of both the Multiannual Financial Framework and the Recovery fund”.
Poland and Hungary agreed not to reopen the file, not only because of possible enhanced cooperation on the Economic Recovery Plan, which would have deprived them of funds, but also because of the possible effects of the delay in the adoption of the MFF on their envelopes, in particular under cohesion policy.
To see the last draft version of the conclusions : https://bit.ly/39VXkPs
(Original version in French by Lionel Changeur, with the editorial staff)