Rule-of-law row is top challenge to EU COVID recovery
fund: senior official
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[September 04, 2020] By
Gabriela Baczynska
BRUSSELS (Reuters) - Securing agreement on
the exact conditions on respecting democracy to attach to the
disbursement of European Union funds is the biggest challenge to
implementing an EU plan to revive the economy after the COVID-19
pandemic, a senior official said on Friday.
European Council President Charles Michel, who chairs EU summits, spoke
to Reuters and five other European news agencies after Hungary refused
to grant its final approval to the EU recovery plan without guarantees
on a linked mechanism on the rule of law.
"There is a difficulty with this topic, it's not new. But we made a big
step on that in July and we must now continue," Michel said of a deal
between the 27 national EU leaders this summer on the economic recovery
stimulus.
"When there is a problem, we need to find a solution. And we will find a
solution," he said, without giving details.
Under the deal, the EU's executive would borrow 750 billion euros ($888
billion) on the market to top up a trillion euros worth of spending
under the bloc's joint budget in 2021-27 to help revive growth.
That still requires approval by the European Parliament, as well as many
national parliaments across the EU. The package would also link access
to EU funds to respecting democratic principles, which Prime Minister
Viktor Orban wants to ensure would not hurt him before granting
Hungary's final approval.
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European Council President Charles Michel gives a news conference
following a virtual summit with European leaders to discuss Belarus
situation, in Brussels, Belgium August 19, 2020. Olivier Hoslet/Pool
via REUTERS
Orban, like his eurosceptic allies in Poland, has long been at loggerheads with
the EU over undercutting democracy, and stands accused of undermining the
independence of the judiciary, media, academics and advocacy groups in Hungary.
The July agreement was left vague on the rule-of-law conditions to avoid a
Polish or Hungarian veto, but the European Parliament wants stronger democratic
safeguards.
The question is set to dominate the bloc's political agenda this autumn, with
Spain and Italy that have been hit hardest by the pandemic and hope to secure
funds quickly.
(Reporting by Gabriela Baczynska, Editing by Timothy Heritage)
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