London Daily

Focus on the big picture.
Tuesday, Jan 13, 2026

EU leaders finally approve coronavirus stimulus package after Hungary and Poland lift their veto

EU leaders finally approve coronavirus stimulus package after Hungary and Poland lift their veto

The latest European impasse over a much-needed stimulus package has finally been overcome, meaning cash-strapped countries will soon get access to a historic level of funding.

In the wake of the coronavirus pandemic, European nations agreed in July to raise 750 billion euros ($908 billion) from public markets and use that money to support the economic recovery across the 27-member region. This was a significant move and came on top of 1.074 trillion euros ($1.3 trillion) to be spent between 2021 and 2027.

However, the implementation of this agreement had been at risk after Hungary and Poland vetoed linking the disbursements of the funds with compliance of European values — also known as the rule of law mechanism. Both nations have been under investigation for years for allegedly influencing the appointment of top judges and discouraging press freedom — actions that go against European law.

After “long negotiations” over the last few weeks, the 27 EU countries agreed to go ahead with this link, but with a caveat: The two countries will be able to ask for an opinion from the European Court of Justice, the EU’s judicial body, so this institution can rule on whether making the disbursements conditional on the rule of law respects the European treaties.

However, it is likely that it will take more than a year for the ECJ to give its opinion, meaning that the two countries are left off the hook in the meantime. This is particularly relevant for Hungarian Prime Minister Viktor Orban, who faces elections in 2022.

The compromise sounds complex but it allows the EU to go ahead with making funds available quickly, while also keeping them conditional on this respect for European values — even if the latter is only likely to kick in at a later stage.


Speaking in Brussels on Thursday, Poland’s Prime Minister Mateusz Morawiecki said the compromise allowed the EU to “avoid arbitrary and political motivated decisions.”

Hungary’s Prime Minister Viktor Orban said the deal was a “victory of common sense.”

However, the deal has raised some doubts about its legality and effectiveness.

“You cannot save the Rule of Law by breaking the law,” Guy Verhofstad, a European lawmaker, said on Twitter.

Lawmakers at the European Parliament have to approve the compromise before it becomes official practice.

“Hungary/Poland lift their veto on EU budget, after being reassured that new Rule of Law mechanism won’t be applied to them until a judgment of ECJ will define ‘methodology’ to be applied. This is not only unprecedented, but also legally questionable,” Alberto Alemanno, professor of European law at H.E.C. Business School in Paris, said on Twitter on Thursday.

There are also doubts about when the link between the funds and the rule of law would actually kick in.

Different member states and lawmakers want sanctions to be applied retroactively from January 2021, which could hurt Hungary and Poland for their ongoing standoff with the European Commission over alleged breaches of European law.


Newsletter

Related Articles

0:00
0:00
Close
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
×