Poland and Hungary are suing the European Court of Justice (ECJ) against the new rule of law clause in the EU budget. The governments in Warsaw and Budapest announced on Thursday. The top EU judges should check whether the mechanism that came into force in January to cut EU funds in the event of certain violations of the rule of law is permissible. Hungary and Poland's trial of strength with the EU is now entering the next round.
Image: APA / AFP
The ECJ confirmed receipt of the complaints on Thursday. According to an agreement between the EU member states, they will mean that the sanction mechanism will not be applied for the time being.
“We cannot allow this EU provision, which seriously violates EU law, to remain in force,” Hungarian Justice Minister Judit Varga wrote on her Facebook page. That is why her country and Poland are suing the rule of law.
It is assumed that the current solution has no legal basis in the EU treaties, said Polish government spokesman Piotr Müller. It affects the competences of the EU states and violates EU law.
Poland and Hungary reject the new rule of law mechanism in the EU's multiannual financial framework for the years 2021 to 2027. They fear that the mechanism aims to cut EU funds for them because of controversial political projects. Both countries receive billions of euros net from the EU budget. A legal state proceeding according to Article 7 of the EU treaties is currently underway against both of them for alleged disregard of EU fundamental values.
Because of the dispute at the end of 2020, Warsaw and Budapest temporarily blocked the new EU budget including the planned Corona aid with a total volume of 1.8 trillion euros. As a compromise, Germany – at that time as the Council Presidency – negotiated an additional declaration on the rule of law mechanism, which all 27 EU states ultimately accepted. The central point was the clarification that the mechanism should be checked by the ECJ. Hungary and Poland had already announced that they would make use of it. Poland is now implementing this.
Whether the lawsuits weaken, delay or even nullify the rule of law clause was assessed differently after the compromise at the end of 2020. EU Commission President Ursula von der Leyen did not see the effect limited. “Not a single case is lost,” she said at the time. The EU Commission will consider possible cases under the new mechanism. “If there is a breach of the rule of law, then this case will be included.” As soon as the ECJ ruled, these cases would be dealt with. Critics fear, however, that the application of the clause will be postponed for many months.
The supplementary declaration on the rule of law mechanism also explains that the determination of a violation of the rule of law alone is not enough to reduce EU financial aid. Rather, it must be shown that the breach has a negative impact on the use of EU money. In contentious issues, the Council of Heads of State and Government must deal with the issue.
Proponents of the rule of law mechanism emphasize that the right-wing national governments in Budapest and Warsaw would misuse EU funds to dismantle democracy and the rule of law. “Hard-earned tax money from EU citizens must not flow into structures that are beyond the rule of law,” emphasized the ÖVP EU parliamentarian Lukas Mandl in a broadcast. The rule of law is “not a boring bureaucratic thing”. The rule of law makes life in freedom and security possible, so Mandl.
