Hungary and Poland Veto EU Recovery Fund

The European Union’s (EU) coronavirus recovery fund has hit a stumbling block following the veto by two member states against the ‘rule of law’.

The EU’s 27 member states worked together to put a recovery package, worth around $2.14 trillion, following the economic difficulties that the bloc has suffered as a direct result of the on-going Covid-19 pandemic. However, Poland and Hungary have refused to agree to the package following the ‘rule of law mechanism’ which is in place to stop any funding going to countries that have been found guilty of any anti-democratic governance.

The move has been seen as self-sabotaging to the countries as they would be two of the recipients receiving the most money from the fund, money that their citizens need to boost their economies.

Both Hungary and Poland have seen the EU leaders discussing whether there should be any penalties imposed upon the two countries following the way their leaders have dealt with their own media with ‘attacks on the freedom of press, expression and their judiciaries.’

In fact, the Article 7 procedure, also known as the nuclear option, has already been launched by the powers in Brussels and could see both countries lose their rights to vote in EU matters. The EU has also pushed forward with their legal proceedings and is moving to take the two countries to the European Court of Justice.

The behavior of Hungary and Poland has caused analysts to discuss whether they would be asked to leave the EU, with the majority of the remaining member states growing increasingly annoyed with their actions.

Speaking to France 24, Paris Bureau Chief Financial Times’ Victor Mallet explained that even though both countries urgently need funds from the recovery package, their leaders’ actions could seriously damage the decision saying “Poland and Hungary will suffer the most if this budget does not go through” so hopefully there “is still room for compromise”.

“The worrying this is, is that freedom, democracy and the independence of the judiciary is absolutely fundamental to the way the EU is seen by most of its members.”

Mallet continued, “If Poland and Hungary are going against that, they are not going to be welcome for much longer. Obviously no one wants them to leave, but the do want them to change their ways.”

France 24’s International Affairs Editor Philip Turle has backed this opinion up, stating that although the money is desperately needed the behavior of Hungary’s Viktor Orban and Poland’s Andrzej Duda will have gone against them.

“Poland and Hungary get about five percent of their gross domestic product (GDP) from Brussels so they desperately need the money, but what they don’t want is to feel like they are being blackmailed by Brussels.

“The bottom line is the behaviour by both of these countries’ governments is unacceptable to Brussels, so there is going to have to be some kind of compromise down the line.
“The EU doesn’t want to lose those two countries, but it’s not willing to put up with two countries laying down the law.”

September saw plans by Hungary and Poland confirmed which would see new procedures put in place to allow them to see how the rule of law is being maintained within the EU, stating that they are concerned that their countries are being unreasonably dealt with through ‘double standard’ implemented in Brussels with Hungary stating, “When Poland or Hungary have been attacked over the rule of law so far, those attacks had nothing to do with the rule of law.

“They were used as a mere means of extortion.”

Orban released a statement saying, “What is today on the table is not the rule of law but the rule of the majority.

“Since we have fundamental debates [with the EU] primarily over migration and national sovereignty, but also on gender issues, I cannot expose Hungary to the risk of being forced by a simple majority to take positions that the Hungarian people cannot accept,”

In response the Vera Jourova, the European Union’s Values Commissioner, has hit back at Orban’s government saying, “It is relevant to have an overview of these issues, and see the links between them. Not least because the deficiencies often merge into an undrinkable cocktail, even if the individual ingredients seem to be fine.

Jourova continued, “The Hungarian citizens need to have the first and last word. It’s for them to have a free choice in elections and that we need to make sure that in all the member states, not only in Hungary, there are conditions to guarantee the free and fair elections for the citizens who are the sovereign power in every member state.”

Meanwhile a senior EU diplomat stated, “With their statement, Poland and Hungary are moving deeper and deeper into isolation.

“It is clear that there is absolutely no support for reopening the conditionality mechanism in the European Parliament or in the Council.”