Thursday March 11th 2021
Trial of strength with Brussels
Poland and Hungary are suing the EU clause
The EU wants Poland and Hungary to be able to cancel funds in the event of violations of the rule of law, but both states oppose this. After a compromise for the EU budget, the dispute goes into the next round. It will now be held before the European Court of Justice.
Poland and Hungary are suing the European Court of Justice against the new rule of law clause in the EU budget. The court confirmed receipt of the complaints. The top EU judges should examine whether the new mechanism for reducing EU funds in the event of certain violations of the rule of law is permissible. Hungary and Poland's trial of strength with the EU is now entering the next round.
The two countries reject the new rule of law mechanism in the EU's multiannual financial framework for the years 2021 to 2027. They fear that the mechanism aims to cut EU funds for them because of controversial political projects. Both countries receive billions of euros net from the EU budget. A legal state proceeding according to Article 7 of the EU treaties is currently underway against both of them for alleged disregard of EU fundamental values.
Because of the dispute at the end of 2020, Warsaw and Budapest temporarily blocked the new EU budget including the planned Corona aid with a total volume of 1.8 trillion euros. As a compromise, Germany – at that time in the Council Presidency – negotiated an additional declaration on the rule of law mechanism, which all 27 EU states ultimately accepted. The central point was the clarification that the mechanism should be checked by the ECJ. Hungary and Poland had already announced that they would make use of it.
Will lawsuit delay the application of the clause?
Poland and Hungary are now implementing this. It is assumed that this solution has no legal basis in the EU treaties, said government spokesman Piotr Müller. It affects the competences of the EU states and violates EU law. Hungary's Justice Minister Judit Varga said on Facebook that a regulation "that seriously violates legal certainty" cannot remain in force.
Whether a lawsuit weakens, delays or even nullifies the rule of law clause was assessed differently after the compromise at the end of 2020. EU Commission President Ursula von der Leyen did not see the effect limited. "Not a single case is lost," she said at the time. The EU Commission will consider possible cases under the new mechanism. "If there is a breach of the rule of law, then this case will be included." As soon as the ECJ ruled, these cases would be dealt with. Critics fear, however, that the application of the clause will be postponed for many months.
The supplementary declaration on the rule of law mechanism also explains that the determination of a violation of the rule of law alone is not enough to reduce EU financial aid. Rather, it must be shown that the breach has a negative impact on the use of EU money. In contentious issues, the Council of Heads of State and Government must deal with the issue.
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