EU leaders agree on budget, COVID-19 recovery package

ANKARA

EU leaders have agreed on a €1.8 trillion ($2.18 trillion) long-term budget and COVID-19 recovery package, the European Council president has announced.

The deal was reached at the EU leaders’ meeting in Brussels.

“Now we can start with the implementation and build back our economies. Our landmark recovery package will drive forward our green & digital transitions,” Charles Michel said on Twitter.

The agreement marks the end of a months-long stalemate over a clause linking distribution of funds to rule of law in EU member states.

According to Barend Leyts, Michel’s spokesperson, the “rule of law conditionality mechanism has been adopted.”

Hungary and Poland were the two countries opposing the stipulation, which proposed that EU budget transfers could be suspended or stopped if a member state’s system has deficiencies such as uninvestigated corruption or compromised judicial independence.

The two countries repeatedly voiced fears that they may be “arbitrarily” punished by European officials critical of their policies.

Germany, the current EU term president, led negotiations on the issue.

In a video message on Facebook, Hungary’s Prime Minister Viktor Orban hailed the budget deal, saying: “Common sense has prevailed.”

Poland’s premier Mateusz Morawiecki termed the agreement a “double victory” as the country secured billions in the budget and “because the conditionality mechanism [linking the release of funds to the rule of law] has been limited by very precise criteria.”