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“We have reached an agreement of a kind that, let me stress it, has accepted all of our preconditions that we have made,” said Prime Minister Mateusz Morawiecki after the EU leader approved the EUR 1,8 trillion budget and Covid recovery plan. “We have a budget, together with the reconstruction fund, which means big funds for investment, big funds for supporting the development of Poland’s economy, for new technologies, for many goals that need to be implemented, especially now that we want to quickly come out of the pandemic. That’s important to us,” he added.
The new agreement still ties disbursements from the fiscal package to democratic and rule of law standards but such sanctions cannot be triggered before the Court of Justice of the EU has ruled on the legality of any nationally introduced measures. The Commission will refrain from implementing the legally binding rule of law mechanism while a member state challenges its legality at the CJEU. This is a process that can take years.
The new mechanism will also not come into effect until next year (after elections in Hungary).Continue reading