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Eastern European countries don't want binding of EU subsidies to the legal regulations

The leaders of the countries of Eastern Europe were opposed to binding EU subsidies in the framework of the European economic recovery plan after a crisis COVID-19 to the European standards of a legal state.

According to Belgian television channel LN24, on this approach, earlier insisted the Prime Minister of the Netherlands mark Rutte in the course held in Brussels the extraordinary summit of the EU on harmonization of multi-year budget plan and Fund post-crisis recovery of the economy of the Union.

In 2018, the European Parliament approved a resolution calling to impose disciplinary measures against Hungary because of "violations of the European norms and principles of the rule of law". We are talking about the possible launch of a European Commission procedure that may ultimately result in the loss of Hungary's voting rights in the EU Council under article 7 of the EU Treaty. However, until now, any decisions on this issue were not accepted.

According to Hungarian Prime Minister Viktor Orban, the procedure of deprivation of the country's subsidies because of suspicions in violation of the rule of law is unacceptable. He noted that Rutte directly expresses the need "to punish Hungary", Budapest if, in the opinion of the Dutch Prime Minister, does not comply with the principles of a legal state. Orban believes that the creation of a new mechanism of deprivation of the country subsidies would require weeks of negotiation and calls for action as part of an existing procedure.

"Instead of having to create a new mechanism, finish what has been initiated, decide to Hungary as soon as possible", - said the Prime Minister during the press approach on the third day of the EU summit.

The Prime Minister of Poland Mateusz Morawiecki also said that Warsaw will not support a new mechanism that provides for the freezing of aid to countries that violate the norms of a legal state because they do not want to feel bound by such obligations. "The position of the countries of the Union closer together, but still not enough," he said before the third day of the summit.

On the eve of the second day of the EU summit, which was supposed to be the final, failed, and the leaders decided to stay in Brussels on Sunday. The President of the European Council Charles Michel almost all day on Saturday conducted bilateral consultations with the leaders or meeting in small groups, but notable progress has not reached, and leaving late in the evening the building of the EU members did not hide the fatigue and frustration over the negotiations.

Sunday talks have started with bilateral consultations.

Ahead of the summit the head of the European Council Charles Michel has published its proposals for recovery Fund and the multi-year budget plan of the EU, which should be agreed upon in one package. We are talking about a recovery plan of € 750 billion, 500 billion of which will be issued in the form of grants, and $ 250 in loans. All the Fund needs to be developed to 2026. Also at the summit discussed the financial plan of the EU 2021-2027 years in the amount of 1,074 trillion euros.

However, after the discussion of European leaders in Brussels has stalled, organizers had to quickly develop a compromise solution. One such proposal, which is intended to remove fears of a "lean" States-donors of the future recovery Fund (Denmark, Sweden, Austria and the Netherlands) and which has the working title "emergency stop" provides for the right lock assist particular state, if will claim his economic recovery plan. But, according to sources in the delegations, the leaders of recipient countries immediately questioned the mechanism for the introduction of such a tool - how many countries will have to support it, and what criteria will be used.

Another compromise proposal and the concession of the donor countries of the Fund may still be a decline in the Fund volume of subsidies from 500 to 450 billion.

The European Commission in a July report voiced a forecast that real GDP in the current year will fall by 8.7% against the pandemic coronavirus COVID-19. In the published in the may forecast, the EC had expected a decline of the region's economy in 2020 is 7.7%. Meanwhile, in 2021 the Euro zone economy could grow by 6.1%, and not 6.3% as previously expected.

In regard to the economy of the entire European Union, the EC expects a decline this year to 8.3%, up from 7.4 percent, as expected in the spring. Next year, EU GDP will rise, the European Commission estimates that, by 5.8%, while in spring it was expected a growth of 6.1%.