Insight

Hungary and Poland are bluffing

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EU funding , Hungary , Poland , Rule of Law

Threatening to veto the EU budget over a mechanism that will tie funding to respect for the rule of law, Hungary and Poland are seeking a concession, not to commit collective self-harm. The EU budget package remains likely to be adopted before the end of the year. Pressure is mounting on Hungary and Poland from Germany – and, in Poland’s case, from the country’s governing coalition itself. In EU compromises, no-one ever loses face. Poland and Hungary are likely to be saved from this by a minor concession on the rule of law mechanism. This could be an annex to

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European funds are likely to be withheld from Poland and Hungary in the next seven-year EU budget amid rule of law (RoL) concerns

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EU funding , Hungary , Poland , Rule of Law

All three major EU institutions are adamant that EU financial support should be tied to respecting common European values and the rule of law. Poland and Hungary will likely lose some funding, with the exact amount depending on the hawkishness of a new rule of law mechanism. Although the precise system of RoL criteria along with details concerning the governance of the mechanism are yet to be determined, pro-RoL stakeholders will likely overcome opposition by Hungary and Poland. Growing pressure from both domestic audiences and the European Parliament (which threatened to block the MFF, the EU’s seven-year budget if no

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