European Union Heading for Crisis in Rule of Law Clash With Hungary

The European Union is heading for a “major crisis” like Hungary, and possibly Poland wants to maintain their opposition to the rule of law conditions for obtaining EU money.

In any case, that will mean a delay for the European multi-year budget and the corona recovery fund, says a senior EU diplomat.

Germany, who will chair the European Union for these six months, will present to the EU countries on Monday the agreement it has reached with the European Parliament on the multi-annual budget and the recovery fund.

This is linked to a new regulation to hold the Member States to account for their dealings with the rule of law. Hungary then made it clear again that it would freeze the budget, which requires the consent of all EU countries if the proposed rule of law regulation is not abandoned.

“We will most likely end up in crisis again Monday afternoon,” said the initiate. “I don’t know how long that will take.” But “this is going to be delayed, there is no doubt”.

According to the source, discussions are already taking place behind the scenes to find a way out. “That will increase”, and Chancellor Angela Merkel, EU President Charles Michel and President Ursula von der Leyen of the European Commission will consider it.

EU leaders reached a hard-won compromise on the rule of law conditions for the receipt of money from the budget and the recovery fund in July.

However, at the insistence of the European Parliament, which must agree, the so-called rule of law mechanism became somewhat stricter last month. The Netherlands initially also resisted but is satisfied now that it has been tightened up.