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EU Will Overcome Veto by Hungary, Poland on Budget, Recovery Fund, Bloc's Economy Commissioner Says

© REUTERS / POOLEuropean Commissioner for Economy Paolo Gentiloni speaks during an online news conference following a Eurogroup video conference meeting at the European Council headquarters in Brussels, Belgium November 30, 2020.
European Commissioner for Economy Paolo Gentiloni speaks during an online news conference following a Eurogroup video conference meeting at the European Council headquarters in Brussels, Belgium November 30, 2020. - Sputnik International
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GENOA (Sputnik) - The European Union will be able to overcome the veto imposed by Hungary and Poland on the EU budget and recovery fund, European Commissioner for Economy Paolo Gentiloni said on Friday.
"I am confident that in the end we will overcome this veto. Three things are clear: first, the rule of law is not optional in the EU. Second, Hungary and Poland strongly need these tools, both Next Generation EU [Recovery Fund] and the EU budget. Third, the fact that we have a rotating presidency is maybe a good advantage in looking for a solution", Gentiloni said at the MED 2020 virtual conference.

The official said that the bloc will not surrender the veto and Hungary and Poland should understand this.

"I am still confident that we will overcome the veto. How can we do this? Well. The roads of diplomacy are very different", he added.

Last month, Poland and Hungary vetoed the 1.8 trillion euro ($2.1 trillion) long-term EU budget, as well as the coronavirus recovery package, as they opposed the budget law clause that ties the availability of the money to the rule of law and respect for democratic standards in recipient countries. Both countries are under the formal EU process over concerns for judicial independence there.

Debt in Euro Area?

The European Union will come out of the coronavirus crisis with 103-104 percent debt in the euro area, Gentiloni believes.

"Of course we will come out of this crisis with a higher level of debt. Our estimate is that the level of debt would be around 103-104 percent on average in the euro area in 2020 and in 2021, and of course we will have to discuss it", the commissioner said.

The debt totaled 95.1 percent of the GDP in the euro area in the second quarter of 2020. At the end of the fourth quarter of 2019, it stood at 84.1 percent.

The ongoing coronavirus pandemic has taken a toll on the European economies, as the EU reported a record 12.1% plunge this summer that was caused by the measures the EU nations had to take to stave off the spread of the coronavirus.

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