EU leaders hold a summit by videoconference today to discuss #covid19 and the EU budget + recovery fund crisis (see below). #Brexit not officially on agenda but leaders expect an update on trade talks from European Commission President. Ursula von der Leyen /1
Mood is sombre on all three fronts in EU circles. On Brexit some member states are pushing to boost no deal planning with negotiations still stuck on some of the toughest issues. This could be attempt to exert more pressure on U.K. Equally no deal is still a real possibility /2
Hungary and Poland insist that a new mechanism in the EU budget - linking adherence to the rule of law to receiving funds - must be removed. This veto also threatens the EU’s eagerly-awaited covid19 recovery fund. /3
Warsaw and Budapest stand to benefit big time from EU budget funds and also from recovery fund but they object to what they see as selective and unfair meddling in member states’ domestic affairs. Their POV, though not their veto, is supported by Slovenia’s PM /4
France insists the rule of law mechanism won’t be removed. Germany is looking into better defining what is meant by ‘rule of law’. The Netherlands and others propose a last-ditch solution of separating the recovery fund from the budget in order to be able to proceed with it /5
Minus Poland and Warsaw. It’s all a big mess and unlikely to be resolved during today’s videoconference summit /6
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