Hungary and Poland have vetoed the European Union’s next multi-year budget and post-pandemic recovery package, diplomatic sources told MTI on Monday.
Budapest and Warsaw reportedly blocked the next seven-year budget and the recovery package because they view them as being in violation of the bloc’s founding treaty as well as an agreement reached by EU leaders in July on not tying receipt of EU funds to political conditions.
With member states failing to reach a unanimous agreement, the issue of the budget and the recovery fund could go back before the European Council, the sources said.
Sebastian Fischer, the spokesman for the German EU presidency, said on Twitter on Monday that
EU ambassadors in Brussels had failed to reach unanimity on the EU’s next budget and the coronavirus recovery fund due to reservations expressed by two member states.
Fischer said the ambassadors had approved the so-called rule-of-law conditionality mechanism with a qualified majority.
Hungarian Prime Minister Viktor Orbán on Monday informed German Chancellor Angela Merkel, European Commission President Ursula von der Leyen and European Council President Charles Michel that
his government would veto legislation related to the EU’s 2021-2027 budget and the recovery fund.
Orbán has said that tying the EU’s budget and the recovery package to conditions where “the nature of the alleged law violation is not precisely defined” put trust between member states, as well as the interests of Hungary, at risk.