Hungary and Poland Block EU Budget and COVID Recovery Package

Poland and Hungary both blocked the budget; their leaders, Presidents Andrzej Duda and Victor Orban, have appeared together in the past. (Wikimedia Commons)

Hungary and Poland blocked the European Union’s 1.8 trillion euro 2021-2027 budget and COVID-19 recovery package on October 16. Both Hungary and Poland rejected the clause making access to money contingent upon respecting the rule of law, but, because only a qualified majority was required for approval, neither country could block the clause. The budget, however, must be passed unanimously, allowing Poland and Hungary to block it unilaterally.

According to the UN, “[T]he rule of law is a principle of governance in which all persons, institutions and entities, public and private, including the State itself, are accountable to laws that are publicly promulgated, equally enforced and independently adjudicated, and which are consistent with international human rights norms and standards.”

Hungary and Poland opposed the link to the rule of law due to the EU’s current investigation of several  countries for violations. On September 30, the European Commission released the first Rule of Law Report, which evaluated the democratic practices of its member states. The report raised 30 concerns over Poland’s respect for the rule of law –the most of any EU member state – while flagging 12 concerns for Hungary. The EU is specifically investigating these countries for the possible infringement upon the independence of media, courts, and non-governmental organizations.

Hungarian Prime Minister Viktor Orban claimed that the link between respect for the rule of law and EU money resembled the Soviet Union’s “ideological blackmail,” while Polish Justice Minister Zbigniew Ziobro called it "institutional, political enslavement, a radical limitation of sovereignty."

Other EU leaders, however, view the matter differently. The Netherlands led a large group of countries refusing to pass the budget without the rule of law conditions. Similarly, Austrian Chancellor Sebastian Kurz said the link is necessary, especially when the sums of money to be distributed are as large as the budget stipulates. 

EU tensions continue to run high as the veto likely means that money for the EU countries’ economic recovery in response to coronavirus-induced recessions will be delayed. German Foreign Minister Heiko Maas said, “There is so much money involved which so many countries in the European Union need and are waiting for, that we not only need a solution but we need it quickly.” French European Minister Clement Beaune assured, “A solution will be found in the coming weeks.”