EU reaches landmark budget deal with Hungary and Poland

EU leaders have reached an agreement with Hungary and Poland over the bloc’s 1.8 trillion euro budget on COVID-19 recovery fund.

The two nations had threatened a veto over a clause that tied funding with adherence to the rule of law which could have cost them billions of euros in EU funding.

But they were assured that the clause would only apply to future spending.

In July, the EU had already agreed in principle on the 1.1trillion budget for 2021-2027, and the 750 billion euro coronavirus stimulus fund.

But the package needed unanimous support of all EU members.

Without the deal, the EU would have been forced to use an austerity budget for next year.