On 21 July 2020, EU heads of state and government reached a political agreement on the package. Since then, the European Parliament and the Council, with the participation of the European Commission, have organised eleven trilateral political trilogues on the agreement to refine the final parameters of the agreement. “Parliament and the Council today reached an agreement on the 2021 EU budget. EUR 164 billion to protect citizens, reduce the immediate effects of the crisis and prepare for a more prosperous, balanced and sustainable future. In the last two days of the negotiations, Parliament has allocated an additional EUR 183 million to its health, climate and employment priorities. Given the very rigid framework, this is a good result. Faced with governments that were not prepared to give up a penny, Parliament did its best and got additional increases. But in all conscience, we all know that this budget is not up to the task. This is the maximum that could be achieved in view of the multi-year budget negotiated with heads of state who decide unanimously. In response to the unprecedented crisis caused by coronavirus, the European Commission on 27 May 2020 proposed the temporary NextGeneration stimulus package, amounting to EUR 750 billion, as well as targeted increases in the EU`s long-term budget for the period 2021-2027. “Hungary has vetoed the budget,” said Zoltan Kovacs, a spokesman for Prime Minister Viktor Orban, arguing that the package should reflect an agreement reached in July.
Hungarian Prime Minister Viktor Orban has sent a letter to the European Commission and EU President of State and Government Charles Michel is threatening to veto the 1,000 billion euro budget if the link between money and the rule of law is not removed. Once the Council formally adopts the compromise in the form of this second draft budget, it will be submitted for approval by the Committee on Budgets, then voted in the plenary session of the European Parliament and signed by its President. To find out more, the EU agrees to link the rule of law to access to budget funds. The EU needs a unanimous vote of the 27 members to adopt the budget and the Coronavirus Economic Recovery Fund. Poland, in particular, is one of the main direct beneficiaries of EU subsidies to farmers, which are the electoral base of the ruling piS nationalist party. If Warsaw and Budapest set the next budget, subsidies to farmers will cease. On Tuesday, the Commission welcomed the budget agreement, which commits to spending at least 30% of the total amount – EUR 546 billion – to combat climate change.