Protection of the Union's budget in case of 'rule of law' deficiencies

On 10 December 2020, the European Council reached an agreement on the implementation of the regulation linking EU funding to respect for the rule of law. Hungary and Poland, in opposing this new mechanism, had been blocking the Union’s new budget but have now agreed to a compromise. The regulation on the rule of law is part of the package on the multiannual financial framework (MFF) for 2021-2027 and the Next Generation EU recovery instrument. The Parliament is due to vote in December at second reading on the agreed text.