Topic of the month
Poland and Hungary vetoed the EU’s historic EUR 1,8 trillion budget and Covid-19 recovery plan over attempts to link funding to respect for the rule of law and democratic norms. The Rule of Law Mechanism would give the European Union a tool for sanctioning violations of stated democratic principles by limiting financial instruments more quickly than is currently possible. Both countries are currently under EU investigations for undermining the independence of courts, media and NGOs. In other words, if the mechanism was approved, they would risk losing tens of billions in aid. Without agreement among all member states, projects financed by the seven-year budget will go without funds and the EUR 750 billion agenda to rebuild European economy will not be activated.