The Rule Of Law Clause’s Functionality In The EU 7 Year Budget Plan

On November 16th, 2020, the Austrian Chancellor Sebastian Kurz stated his support for the Rule of Law clause in dictating how joint EU Covid Relief funds are spent in neighboring nations. Kurz argues that “the principles of rule of law are an absolute necessity.” It is important to recognize, however, that this statement was in response to a recent veto from EU members Hungary and Poland, who would be deprived of funding if they failed to meet the minimum standards that the Rule of Law created. Essentially, Austria has reiterated their support and standing with the majority of EU members, in the absolute importance of the vital clause. This decision, while vital to the democratic process, draws out the length of deliberation necessary to pass out important Covid-19 relief funds, that were designed to reinvigorate the economic damage that the virus has caused to the European continent. This situation is extremely complex, as we are seeing a clash between federal and individual sovereign state’s rights. The complexity of the issue is also further heightened by the short time limit caused by the demand for immediate economic relief. 

In order to fully understand the nuances of Austria, Poland, and Hungary’s positions, we must first see the specific bill that has sparked this ideological face-off.  The bill that caused this staunch rise, was an EU 7 year budget proposal that called for EU members to raise over 2 trillion dollars to be used over the 7 years as a relief for the economic damage caused by Covid-19. The clause that caused Poland and Hungary to veto, however, is called the Rule of Law clause. This clause allows a unanimous EU Council or the European Court to decide to allow economic sanctions or suspend membership rights if a member violates basic EU protocol. It is normally used as a justification to allow citizens to hold the government accountable and to limit the powers of the government. With the size of the EU, however, Poland and Hungary view that this clause essentially forces member states to bow to EU mandate and thus limits the individual country’s sovereignty. This situation then becomes even more complicated when the fact that the deadline for the EU 7 year budget is approaching, and the havoc that was caused by Covid-19 on the EU economy requires immediate addressing.

This conflict is representative of a larger struggle that we have seen played out time and time again whenever sovereign states join a federation. The struggle between Poland and Hungary and the rest of the EU is another instance of this historical battle between individual sovereignty versus the power of the government. Now, while I am by no means an authoritarian, I would argue that there are certain limits to individual freedoms and  there is an overarching moral and pragmatic responsibility to the collective and the greater good. So with this in mind, when approaching the historical conflict between the limits of federal governments and sovereignty, I truly believe we must examine each instance on a case by case basis.

With this valid context concerning my viewpoint set, I personally agree with Austria’s stance and the rest of the EU concerning the Rule of Law. Poland and Hungary’s claim that this is an invasion of sovereignty, is pretty contradictory, as the Rule of Law clause provides a mechanism for individuals and the government to be held accountable for their actions. The clause, I would argue, is rather an increase to individual freedoms as social contracts maintain their validity through the mutual agreement on their utility. As this particular Rule of Law clause is surrounding such an exuberant sum of taxpayer money, absolutely the government and individuals should be watchful of how the EU spends this money. Considering the timed nature of this issue with Covid-19, I believe we are in a form of legislative deadlock. While certain sources such as the Financial Times, argue that perhaps Poland and Hungary are bluffing, it is important to recognize that the Rule of Law clause is a fundamental legislative clause. I would therefore reach out to the people of Hungary and Poland and call upon them to pressure their national governments to agree to this clause. Not only do the people get the immediate benefit of Covid-19 relief funds, but they are also provided the benefit of holding their and other member’s government’s accountable for the usage of their tax dollars.

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