The Heads of State and Government of the 27 have settled this Thursday, after weeks of tension and paralysis, the dispute over the controversial Mechanism of the Rule of Law, an instrument that will allow, in exceptional cases, freeze community funds for those who push the rule of law and community values ​​to the extreme.
The leaders have agreed at the European summit that launched today a solution that allows to circumvent the veto of Hungary and Poland, which were considered directly on the target, which had blocked the Union Budget for the next seven years and the Fund Recovery 750,000 million euros that should help alleviate the effects of the pandemic. The money is released and much needed aid funds in Spain or Italy could be available in the second half of 2021.
“Agreement on the Financial Framework and the New Generation EU Recovery Package. Now we can start with the implementation and rebuild our economies. The package will lead the digital and green transition”, the President of the European Council celebrated at 7:00 p.m. Charles Michel.
Although technically the Heads of State and Government have given the green light in just 25 minutes and without debate in the room, in reality it has not been easy to find a way out. Diplomats call “smart” the German presidency proposal, which yesterday offered a fourfold network of guarantees that this mechanism will not be “discriminatory” or “arbitrary” and that it will not be used as a bargaining chip to pressure Hungarians and Poles on migration and asylum issues.
It will also have a special resource, a emergency break, so that the European Council can interrupt any sanctions process if there is a sufficient majority. And furthermore, the European Commission undertakes not to develop the specific regulation and not to publish the guidelines that will structure its operation until the Court of Justice of the EU do not rule on whether the mechanism is fully in accordance with European law or not. Something that can take between six months and years, depending on when you turn to Luxembourg and the urgency with which the magistrates process it.
Orban’s title role
The solution satisfies Warsaw and especially Budapest, since Orban wins precious time, manages to narrow down even more the cases and reasons why the weapon it can be applied and also limits the volume of funds that could hypothetically be affected in the worst case scenario. The original idea is that once the Rule of Law Mechanism is in force, it could apply to all the money that is being disbursed or is going to be disbursed, including the pending funds from the current Budget. But the agreement to 27 contemplates that it will only be money from the new Financial Framework, from January 1.
The issue of the date is thorny and led to Netherlands, the partner that has been the most combative on the issue of the violation of community values ​​and principles (included in Article 2 of the EU Treaty) to ask the Council legal services a specific exam. On Wednesday, the day before, the lawyers of the Council and the general secretariat of the Council, supported by the legal services directed by the Spaniard Daniel Calleja, had endorsed the solution, which in practice will take to the Commission to a political commitment not to apply something approved until the sentence is reached. But Mark Rutte wanted something firmer. When the lawyers gave their endorsement, there was no political discussion.
In this way, the EU formalizes in December what it thought had been closed last July. With luck and a speedy processing, in the coming weeks on January 1 the new Budget will come into effect and the procedures can be activated so that the disbursement of funds begins as soon as possible.
Spanish aspirations
Spain aspires to around 140,000 million euros between loans and transfers in the coming years, and has already committed part of that amount in the Budgets of 2021. Our country, like all the others, must present between January and the end of April a national reform and resilience plan, including the steps it will take to modernize and transform the economy, according to the framework set by the specific recommendations that Brussels has issued in recent years and which point to structural weaknesses. They are essential to be eligible for the money, and they need the approval of the European Commission and that no government put a bumper in the wheel in the European Council either.
Hungary and Poland they had no problem with the Fund itself, or with the 2021-2027 Budget, and in fact they need that money more than anyone else. But how they could not veto the Rule of Law Mechanism, which is approved by a qualified majority, they had exerted pressure or blackmail by blocking the great cake, which demands unanimity in some of its more technical aspects.
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