Germany Dilutes EU Rule-of-Law Plans With Virus Aid at Risk

  • EU is looking to tie recovery funds to respect for rule of law
  • Poland, Hungary oppose rule-of-law conditions on payouts

Hungary’s Prime Minister Viktor Orban.

Photographer: Gabriel Kuchta/Getty Images

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Germany proposed watering-down the conditions tying European Union funding to respect for the rule of law in what’s widely seen as a bid to reach a compromise to unlock the bloc’s landmark 750 billion-euro ($875 million) coronavirus recovery fund.

Germany, which holds the rotating presidency of the EU, proposed a mechanism that could suspend payments to member states that are in breach of democratic values while making it harder to trigger the procedure, according to a draft seen by Bloomberg.