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In the EU budget dispute with Hungary and Poland, everything now depends on the summit of the heads of state and government.

The German EU Presidency submitted a compromise proposal drawn up with Warsaw and Poland to the other member states on Wednesday.

According to AFP information, it could significantly delay the use of the controversial option to cut EU funds - possibly until after the parliamentary elections in Hungary in 2022. Budapest has already celebrated a “victory”.

Because of the rule of law plans, Hungary and Poland had vetoed a EUR 1.8 trillion financial package from the EU budget for the next seven years and the Corona aid fund.

Without a solution, the EU faces an emergency budget with drastic cuts from January.

The 750 billion euro aid fund against the economic consequences of the Corona crisis could not start as planned.

The German EU Presidency has been looking for a solution for weeks.

Changes to the rule of law mechanism that had already been negotiated were considered ruled out due to opposition from the European Parliament and several member states.

Germany has now agreed with Hungary and Poland to add an “interpretative declaration” to the rule of law mechanism.

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This compromise was presented to the EU ambassadors of all member states in Brussels on Wednesday afternoon.

Before the summit he will now be subjected to an “in-depth analysis” in the capitals, said an EU diplomat.

The heads of state and government should then decide on Thursday.

"Triumph for the Hungarian-Polish friendship"

On the one hand, the text affirms that the rule of law mechanism should be applied “fairly, impartially and based on facts” and only serves to protect the EU budget and the financial interests of the Union, for example in cases of corruption.

However, it should not generally be used to punish deficits in the rule of law, because of which Hungary and Poland have been pillory in the EU for years.

The main concession to Warsaw and Budapest is that the application could be delayed.

This would be the case if a country brought an action for annulment of the entire mechanism to the European Court of Justice.

Then Brussels should not make a decision to cut EU funds until a judgment is made.

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Proceedings before the European Court of Justice can take one to two years.

This could mean that the Hungarian Prime Minister Viktor Orban does not have to fear that his country will have EU funds cut before the parliamentary elections in 2022.

Hungary's Justice Minister Judit Varga celebrated a “victory” on Twitter.

Your country "prevented political blackmail".

The deal is "another triumph" for the Hungarian-Polish friendship.

It remains to be seen whether the other EU states will agree.

Most countries supported the compromise, said another EU diplomat.

The Netherlands, Denmark and Belgium still have reservations