Hungry and Poland have set out to block progress on the EU’s seven year budget that is set to take effect from 2021 until 2027.

The called the Multiannual Financial Framework (MFF) will dictate the EU’s spending on farmer supports under the Common Agricultural Policy. Under the proposed MFF, the overall CAP budget remained at its previous level, with Ireland’s allocation cut by 3% for direct payments but increased by 15% for rural development schemes.

If the MFF and the revised spending allocations do not come into effect on 1 January 2021 there could be consequences for farm payments.

The budget, proposed by the European Commission in May and backed by EU heads of state in July, has been subject to intense discussions between the European Parliament and Council in recent weeks.

Discussions

Both sides secured a political agreement last week, which still requires formal endorsement from the full Parliament and all EU member states.

The Parliament is expected to vote on the agreement in December but the objections from Hungary and Poland will frustrate progress on the Council’s side.

The two countries have taken issue with the inclusion of a mechanism that would allow the EU to cut off funds to countries found to be violating the rule of law.

The disagreement is set to dominate a virtual meeting of EU heads of state on Thursday as the EU seeks to prevent budgetary chaos in the coming months.

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