Brexit: EU want to show there is a 'price to be paid' says Hannan
A senior EU diplomat has said that the eastern European nations have only hours to signal that they will lift their veto. If the two nations refuse then the EU has planned for an alternative stimulus package that will be distributed throughout the EU, except for Poland and Hungary. The economic recovery amounts to $2.2trillion (£1.65million).
However, Hungary and Poland have shown no sign of agreeing to the current stimulus package.
The two nations fear being tied into a stimulus package that would see them suffer the consequences of funding cuts from the EU’s 2021-2027 budget.
Hungarian foreign minister Peter Szijjarto met with his EU counterparts and said: “I talked with my Polish colleague ahead of the meeting and we agreed that we were going to stand together and won’t allow anything to drive a wedge between us.”
Hungary wants the EU to drop one of the aspects of the package that sees member states having to meet rule-of-law conditions before they can receive payouts from the stimulus arrangement.
We will use your email address only for sending you newsletters. Please see our Privacy Notice for details of your data protection rights.
Both Poland and Hungary see this as an attack on their anti-liberal governments and as being undemocratic.
German Chancellor Angela Merkel has been unsuccessfully trying to broker a compromise between the two nations and the rest of the EU.
If the deal is blocked by Poland and Hungary then the EU would be forced into a partial shutdown from the beginning of January.
The rule-of-law conditions for the payout could still be introduced by a majority vote by the combination of the other EU member states.
But, if this happened, both Hungary and Poland could lose access to these payments if they fail to meet the conditions attached.
If Poland and Hungary do veto the move then the coronavirus recovery fund would take many more months to be rolled out across the bloc.
Both nations are already facing probes into undermining the rule of law.
If they do not budge then they risk losing a combined 180 billion euros (£164billion) in development funds.
Ireland PANIC: Coveney admits Brexit deal looks very difficult [REVEAL]
Nigel Farage warns Boris Johnson against Brexit ‘sell-out’ [COMMENT]
Merkel does NOT agree with Macron’s fishing demands in Brexit talks [INSIGHT]
Since both countries began their transition into the EU in 2004 they have been net receivers of the bloc’s funding.
This has helped raise living standards in the ex-communist states.
Diplomats in Brussels attest to the bloc not having the patience to engage in a prolonged negotiation over the stimulus package and may prefer moving to an alternative measure that by-passes the two nations.
Source: Read Full Article