Monday, January 18, 2021
Home EU Impending fines for Fidesz and PiS block the EU multi-year budget

Impending fines for Fidesz and PiS block the EU multi-year budget

Europe is working on an escape route to circumvent an imminent Polish-Hungarian veto against the European multi-year budget. That Polish-Hungarian resistance also threatens to block the disbursement of the corona mega-recovery fund, as well as the funding for the transitional arrangement for the new agricultural policy.

The issue threatens to destroy the upcoming summit of EU leaders in advance. That is why the European Commission is now - with support from France and the Netherlands - working on a disbursement plan with 25 EU member states, without the two troublemakers. In that case, for the first time, the 'sacred unanimity' on Budgetary issues is released.

The quarrel about the multiannual budget for 2021-2027 affects a large number of issues. The biggest obstacle is a new fine system for countries that do not care about 'European norms and values'. More and more EU politicians believe that Hungarian Prime Minister Orbán and the Polish PiS party have been doing their own thing for far too long.

As Poland and Hungary appear determined to hold back the budget package plus recovery fund (worth EUR 1,820 billion together), the entire EU funding threatens to stall.

The Agriculture Committee and the LNV ministers agreed last week to a two-year transitional arrangement for the CAP subsidies, but that funding is now also becoming uncertain. Everyone recognizes that this transitional arrangement must be paid and is therefore part of the AGRI budget for 2021, which in turn is part of the currently under discussion EU multi-year estimate 2021-2027.

The heads of state or government will meet on the subject next week (10-12 December), and the full European Parliament in the following week (14-17 December). This whole hassle can also put the financing of all agricultural agreements in question again ...

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