BRUSSELS (Reuters) - European Union governments and the European Parliament agreed on Friday on the annual EU budget for 2021, but for it to become law, Poland and Hungary will need to lift their veto of the overall 2021-2027 EU budget framework.
The 2021 budget for all 27 EU countries is already built on revenue and spending limits set in the EU’s new seven-year budget, which Warsaw and Budapest do not want to accept because it links access to EU money with respecting the rule of law.
“The budget for 2021 can only enter into force once the blockage on the overall EU budget and recovery package is lifted,” German ambassador to the EU Michael Clauss said.
“Without this, we are looking at a drastic cut in EU funding from the beginning of next year,” he said, referring to the EU moving to a system of provisional financing, last used in 1989.
Under the provisional 12ths, no new projects would get financing, only those already started under the 2014-2020 budget.
Michael Clauss, ”
Union, EU, ’, Farmers
BRUSSELS, Poland, Hungary, Warsaw, Budapest, German