Recovery, EU Parliament: “No to renegotiation of agreements, we are not giving in on the rule of law”. But Slovenia sides with Budapest and Warsaw

No room for maneuver for one renegotiation of the agreement on European budget 2021-2027 and on Rule of law. The European Parliament does not yield to the blackmail of Hungary e Poland who have decided to put the veto on the seven-year budget, to which the funds of the Next generation Eu (O Recovery Fund) for the fight against the pandemic of Covid-19. The message is contained in a note issued at the end of the conference of presidents in which it is specified that “the agreements reached (both on the EU multiannual financial framework and on the rule of law) are closed and cannot in any way be reopened. No further concessions will be made from our part. We ask the Council to adopt the package and start the ratification process as soon as possible ”.

During the day, however, the Slovenian prime minister also announced his support for the veto of Budapest e Warsaw on the European plan of 750 billion euros between loans and grants developed to counter the economic fallout of the pandemic. “Only an independent judicial body can say what the rule of law is, not a political majority,” he wrote Janez Janša in a letter sent on 17 November to the President of the European Council Charles Michel. “The situation is serious, it will take some time, so it is highly unlikely that the solution will be found tomorrow at the leaders’ videoconference”, explain European diplomatic sources.

The crux is that of respect for democratic principles as a condition for accessing funds. Proceedings had already begun against Poland and Hungary for some infringements of these standards set by the EU. In the morning, the Hungarian premier Viktor Orban he tweeted that the EU wants to use the Recovery Plan to “blackmail those who oppose immigration”, reiterating that there will be “no agreement without objective criteria and the possibility of appeal”.

“The deal was thwarted this week, but an entry into force of the Next Generation is crucial to put our economies on a path of recovery “, said the commissioner for the economy, Paolo Gentiloni, asking leaders to show “a strong sense of responsibility towards their citizens and towards all Europeans ”.

Yesterday the EU Budget Commissioner, Johannes Hahn, had stated “There are immense expectations” on the economic package of the EU Budget and the Recovery Fund, if we fail to implement it “There would be a devastating impact on our citizens, our economies e also our markets“. Thus he highlighted: “it would have enormous political consequences for our Union and for every Member State. Therefore, I encourage those who still have reservations to reconsider because it is about everyone’s future ”.

In fact, the agreement on the Recovery Fund which took place between May and June last year resulted in a gradual fall in the yield differentials between the government bonds of European countries. This is a sign that the launch of a first instrument for sharing risks between EU countries has been well received by the markets. If the process gets bogged down, it is likely to expect greater market tensions, increasing pressure on the European Central Bank which is already buying large quantities of securities with the effect of lowering yields. The problems would also concern budgetary laws of various countries, including Italy, set up by also taking into account the money that could arrive as early as 2021. For Rome, about 8 billion euros in grants.

Actually Hungary and Poland are among the countries that would most benefit from the green light to the European budget, having in turn important financing needs. The cards in the hands of the recalcitrant countries they are certainly not those of a poker of aces, they can certainly try to up the ante but they can’t afford to blow the bank. There are mediation margins and Berlin is working to mend the rift, probably with some concessions on the subject of legal principles and with the halt to the proceedings already initiated against Poland and Hungary.

“The EU Commission is working with the current “German presidency, “Who has the leadership, and with the President of the European Council”, Charles Michel “to find possible solutions” after the veto of Poland and Hungary. “The Commission continues to consider both issues to be important, both the implementation of Budget and Recovery, and respect for the rule of law.” So, a little while ago, the vice president of the Community Executive, Valdis Dombrovskis.

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