Hungary and Poland have reached a compromise with Germany to end their standoff with the EU, officials said, after Budapest and Warsaw vetoed the bloc’s €2.2 trillion, seven-year budget over a rule of law provision.
The new deal will require further approval from other member states before it can proceed, but the agreement offers a potential end to the stalemate that had threatened to block the EU’s 2021-2027 budget and a €750 billion ($906 billion) pandemic relief fund. EU leaders will discuss the renegotiated proposal during a summit on Thursday.
A senior Polish government official announced on Wednesday that “we are preliminarily in agreement but there is some pressure… the aim is to have this done before the EU summit.” An EU diplomat confirmed that a potential deal had been reached and they were waiting for final confirmation before making a formal announcement.
The Hungarian government has not yet provided a statement on the matter. However, Prime Minister Viktor Orban said earlier this week that there was a “good chance” a deal would be worked out in time.
Brussels, Hungary and Poland have not yet stated how the compromise was reached or what changes will be made to accommodate the demands made by each party.
The Hungarian and Polish governments had opposed the funding arrangement because of a tied provision which would have allowed the EU to block money to nations that do not respect the rule of law. Both countries had been under investigation by the EU over concerns that they sought to weaken the independence of the judiciary and restrict freedom of the press.
If they receive the funding provided, according to the European Commission, Hungary would be handed €4 billion ($4.8 billion) net from the coronavirus recovery fund, and Poland would secure around €65 billion ($78.5 billion) net.
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