EU is looking for a solution to the dispute over the EU budget: French official

French Secretary of State for European Affairs Clement Beaune said on Wednesday that the EU is investigating "practical solutions" to the dispute over the EU budget and financial aid package. "If necessary and as a last resort, we will look at how to proceed without countries blocking it," he added.

On Wednesday, in the French Senate, Beaune commented on Poland's and Hungary's opposition to linking EU funds with the rule of law.

“The EU will proceed without the countries which are blocking the budget and related bailout package if no compromise is reached”, he warned. The reconstruction fund is expected to bring economic recovery after the crisis caused by the coronavirus pandemic.

"During the German presidency of the EU, we are looking for practical solutions," but "if necessary and as a last resort, we will look at how to proceed without the countries that are blocking," said France's Secretary of State responsible for European policy.

On Monday, at a meeting of the ambassadors of EU countries, the text of the regulation on the conditionality of EU funds on compliance with the rule of law was adopted by a qualified majority of member states. Poland and Hungary voted against.

The German EU presidency announced after the meeting that no unanimity on the budget for 2021-2027 and the reconstruction fund had been reached.

The next procedural step on the rule of law mechanism is the formal approval of the text by the Council of the EU by written procedure. The presidency will decide the timing of when this occurs.