Europe Can Have Stimulus or Rule of Law, Not Both
For the sake of its pandemic fund, the EU will probably opt for placating Hungary and Poland. But a slide in democratic norms could be its undoing.
Mrs. Merkel goes to Brussels.
Photographer: Bloomberg/BloombergMore by carelessness than design, the European Union has conflated two of its biggest problems into what this week became one hot mess. To get out of it, the bloc may have to make the Brussels equivalent of Sophie’s choice: It could sacrifice the principle that all member states must respect the rule of law. Or it could ditch its plans for economic recovery and fiscal cohesion.
This trap was laid in July. Under the moderation of Germany, which holds the rotating EU presidency, the 27 national leaders tentatively agreed to a groundbreaking budget-plus-stimulus deal to address the pandemic. Worth 1.8 trillion euros ($2.1 trillion) in total, the package includes 750 billion euros to be financed by the first “European” bonds ever issued, which is why it’s considered the germ of a future fiscal union. But it still has to be accepted by the European Parliament and ratified by all member states.