As Poland and Hungary have decided to veto the EU's budget and coronavirus recovery package, EC President Ursula von der Leyen tells LRT TV that there is still hope for a deal. Meanwhile, Lithuania looks to make use of a 602-million-euro programme to help companies keep their workforce during downtime.
Hungary and Poland blocked approval of the EU's long-term budget on Monday. Of the nearly two trillion euros of EU spending through to 2027, about six billion would go to Lithuania.
The EU budget needs a unanimous agreement from all 27 member states, but Warsaw and Budapest opposed to a rule-of-law mechanism that could see them lose EU subsidies if they continue with policies seen as eroding democratic standards.
Von der Leyen spoke to LRT TV on Monday.
We have just learned that Poland and Hungary are blocking the EU's recovery package, protesting that the EU funding should be linked to the rule of law. What was your reaction to the news?
We are in the midst of a very difficult negotiations, but we have to come up with a solution, because a lot is at stake. You know that the European economy, people in Europe definitely need the Next Generation EU recovery fund. For example, Lithuania looks at 3 billion from Next Generation EU that can be invested into the economy.
Even if this crisis cannot unite Europe, what can?
Indeed, we've gone through ups and down in these negotiations and over and over again we were able to find unity. You might remember at the very beginning, when I proposed Next Generation EU, it was difficult to get it started, but we had together a deal and now next step has to be done. So I call on all that we find a solution. It is important for the EU in this very severe crisis.
The second wave of the coronavirus pandemic hit our economies harder than expected. How much can Poland and Hungary delay the recovery fund?
I think we now have to work hard in the negotiations in the Parliament and Council, but in the meantime I have good news for Lithuania. We are able to put forward the so-called SURE (Support to mitigate Unemployment Risks in an Emergency) programme. As of tomorrow [November 17], there is access to [a loan of] 300 million euros for Lithuania.
And here the goal is to protect companies, protect workers. We tell the companies: keep your workforce, don't lay them off. We will subsidise their salaries even if there is no work in order to have in the companies the skill and the knowledge when the economy is picking up again. This is good news in a very difficult time.
Lithuania will have access to 300 million euros in loans and 300 million more in the future under the same programme?
Yes indeed. In total, it is even more, 602 million for Lithuania. Pretty sure that the second tranche will be available. Now it is important to sit down with employer unions and trade unions and to find out where the money from the SURE programme is most needed, because our companies are in a very difficult time and there is so much uncertainty for workers, they need certainty, they need to know that Europe is at their side, standing up for them.
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