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Photo: Francois Lenoir / AP
Several EU countries are blocking a decision that is important for the start of the European Corona economic stimulus program.
According to diplomats, around a third of the member states made it clear in Brussels on Friday that they would not support the decision on future EU funding for the time being.
This so-called equity decision is intended to regulate where the money should come from.
Before that, however, there must be clarity about the overall EU budget for the next seven years, that is one demand.
"This shows the importance of making rapid progress in the negotiations with the European Parliament on the multiannual financial framework in order to get the whole package across the finish line on time," commented one diplomat.
The package agreed by the heads of state and government at a special summit in July consists of corona aid amounting to 750 billion euros and funds for EU budgets from 2021 to 2027 amounting to 1,074 billion euros.
However, it can only come into force if the EU Parliament agrees.
As things stand at present, MEPs only want to do this if there is more money than planned for EU programs such as Erasmus (youth & education) and Horizon (research).
Another central demand of Parliament is to make the payment of EU funds dependent on compliance with the rule of law - which is aimed primarily at countries like Hungary and Poland.
Plastic delivery also depends on it
However, Parliament is faced with a dilemma: if the budget goes wrong, it will also block the economic aid urgently needed in the corona crisis countries.
At least that is the reading in the member states.
In Parliament, however, a trick is being considered: You could approve the Corona package, but not the budget for the time being.
The EU states strictly reject this - if only because the heads of state and government would have clearly approved both parts as an overall package.
The parliament, however, continues to point out that a separation of the two parts is legally possible.
Parliament risks disputes with countries from several camps.
The "frugal" EU states fear that the MPs will agree to the Corona reconstruction package in order to then demand higher expenditure in the regular budget.
Hungary in particular, on the other hand, suspects that Parliament could bring a tough rule of law mechanism into the budget in this way.
According to diplomats, Prime Minister Viktor Orbán is threatening to withhold his approval of the capital adequacy decision until even a mild version of the rule of law mechanism is off the table.
"Europe is in the word"
The own funds decision is, among other things, the basis for the EU Commission to be able to raise the funds planned for Corona aid on the financial markets.
It is also intended to regulate, for example, that a new tax on non-recycled plastic waste is introduced in favor of the EU budget.
Speed is of the essence above all because the decision has to be ratified in the individual member states by the end of the year.
If this does not succeed, an emergency budget would have to be used for the time being and the corona aid could not start.
"Europe is committed to supporting the people and regions particularly affected by the corona crisis as quickly as possible," commented German EU ambassador Michael Clauss, who leads the negotiations with the European Parliament for the governments of the EU member states.
The top diplomat demanded that the frequency of the consultations should be increased significantly in view of the slow progress.
In the European Parliament, however, the view of the current German Council Presidency was soberly noted on Friday.
"The problem is not that we are not holding enough meetings, but that the German Presidency does not allow any compromises when it comes to increasing the programs," commented German MP Rasmus Andresen (Greens).
If the Council wanted to speed up the negotiations, it should act that way.
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caw / mbe / dpa
