EU: the Commissioner for the Economy calls on the 27 to release the European budget - France 24

Brussels (AFP)

Economy Commissioner Paolo Gentiloni on Wednesday called on the 27 EU member countries to validate the European budget and recovery plan blocked by Hungary and Poland in the midst of the second wave of the health crisis.

"I call on EU governments to show a sense of responsibility vis-à-vis their own citizens and all Europeans at a crucial time. Let's validate this recovery plan," he said. launched.

Budapest and Warsaw on Monday blocked the EU budget and the massive stimulus package painstakingly approved by the Twenty-Seven in July.

They have thus opened up a crisis within the European Union at a time when the economy is severely affected by the second wave of the Covid-19 pandemic.

Hungary and Poland have used their veto to oppose the establishment of a mechanism to deprive countries accused of violating the rule of law of European funds (independence of the judiciary, respect for fundamental rights).

These two countries also obtained the support of Slovenia on Wednesday.

The European Commission is also concerned about the impact of the stimulus measures on public finances in four countries of the euro area, targeting in particular the salary increases in hospitals and the reduction in production taxes in France provided for in the 2021 draft budget.

"Some measures presented by France, Italy, Lithuania and Slovakia seem neither to be temporary nor offset by other budgetary measures", underlined the Commission in a report, calling for ensuring debt sustainability in the medium term, despite the health crisis.

Brussels believes that all member states' budgets for next year, including in these four countries, are "broadly in line" with its recommendations.

Given the context of the exceptional crisis, the EU announced in March a suspension of its budgetary discipline rules, calling on the various countries to temporarily let their fiscal deficits slip.

The Commission is still on this line.

It calls on "the member countries of the euro zone to ensure that their fiscal policy continues to support activity in 2021".

But it also asks them to be ready to "reorient these fiscal policies (...) when epidemiological and economic conditions allow it".

Hence the concern expressed for the four "pinned" countries.

Brussels asks them to ensure that exceptional measures do not turn into a lasting drift in their levels of debts and deficits.

© 2020 AFP