The last European Council meeting for 2020 is taking place at the moment. It began yesterday and will conclude later today, as EU leaders try to finalize important end-of-the-year matters.
The budget for next year was number one on this list. This issue was crucial to resolve, as it determined how the European Union will be spending its money and whether it can set aside enough funds for the Recovery Fund, a special section of the budget dedicated entirely to fighting the economic damage caused by the coronavirus pandemic.
Poland and Hungary previously cast doubt over the future of the Recovery Fund. The two most far-right leaning countries in the EU had a problem with a clause in the funding bill that tied the receipt of funds to a respect for the rule of law. Both Poland and Hungary have attracted criticism from the EU in recent years over such violations, undermining the independence of the judiciary branch, as well as the freedom of speech and press. Afraid that these policies will leave them without stimulus from the EU, Poland and Hungary said they will veto the bill.
However, other EU member states successfully pressured the two rebels into accepting the bill and the budget plan, worth 1.8 trillion euro together. The compromise was due to a clarification that the respect of the rule of law will not apply retroactively. In other words, Poland and Hungary (or any other member state that violates that principle) can only be punished for future offenses, not for what they have already done.
The Prime Minister of Poland still stated that the country will challenge the problematic clause in the European Court of Justice, but at least for now, the EU has successfully secured its budget for next year and the stimulus funds necessary to recover from the Covid-19 crisis.
The EU Council summit has been disappointing for anyone hoping for Brexit news. The issue of the transition period ending in less than three weeks is not on the agenda. The UK and EU negotiators are still talking but based on what Boris Johnson and Ursula von der Leyen have said, they have until Sunday to find a compromise. The EU has already drafted guidelines for a no-deal scenario, which Johnson stated is very likely.
