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On Tuesday, the European Parliament and Council reached a final deal on the EU's long-term budget, agreeing to add € 16 billion for health, education and security. In total,
the EU will now have a budget worth € 1.8 trillion.
The agreement, which took almost four months to negotiate, now needs to be formally approved by the EU governments and the European Parliament.
However, a new friction could arise, especially since Poland and Hungary are vehemently in opposition.
Hungarian Prime Minister, Viktor Orban, even sent a letter to the European Council President, Charles Michel, threatening to veto the € 1.1 trillion budget.
But there is no certainty that Hungary will really do this, as such an action will lead to loss of money for all 27 EU countries, including Hungary and Poland, which were both net beneficiaries of EU financial support.
Nonetheless, during this month, negotiations are expected to continue.
The parliament wants most of the money to be paid up front before projects reach the agreed milestones, and more money should be allocated for projects that help reduce CO2 emissions.
Meanwhile, the EU government wants the budget to be spread for over 4 years, not 3 years.
As soon as the government and parliament fully agree on the direction of the budget, the deal can be ratified by the national parliaments of the 27 EU countries, and the money will begin to flow in the second half of next year.
"The Parliament will only ratify today's deal if member states comply with all parts of the agreement," said Siegfried Muresan, senior MEP in charge of budgetary affairs.
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