LUXEMBOURG: EU powerhouse Germany called Thursday for member states to respect the bloc's democratic standards if they want to receive development funds, pressuring countries like Poland and Hungary.
German economics ministry official Matthias Machnig made the link as he joined other EU ministers to debate how to distribute development funds for the bloc's multi-year budget after 2020.
"The cohesion and structural policy must contribute to further strengthen our common European values and the rule of law," Machnig told reporters before the meeting in Luxembourg.
His remarks were a veiled warning to eastern countries like Poland and Hungary which European Union officials warn are undermining democratic standards, such as the independence of the judiciary and the media.
Germany also wants to reward EU member states that admit Syrian and other refugees with more funds but denies it aims to punish countries that reject them, such as Poland, Hungary and other eastern member states.
EU diplomats said Germany, France, Italy, Netherlands, Sweden, Danmark, Finland, and Belgium are leading calls for member states to respect rule of law in order to benefit from so-called cohesion funds.
These funds, originally designed to bridge the gap between the bloc's poorer and wealthier regions, amount to 450 billion euros in the current 2014-2020 EU budget, set at 963 billion euros.
With 86 billion euros ($106 billion) allocated over the current seven year budget, Poland is by far the biggest recipient of such funds. Hungary is set to receive 25 billion euros over this period.
The funds -- designed for projects in transport, environment, energy and employment -- will be a key part of the debate for the next 2021 to 2027 budget.
Debate promises to be tough as the remaining 27 member states will have to plug a hole left by Britain's exit from the bloc of up to 15 billion euros per year.
The debate formally kicks off when the European Commission, the EU executive, adopts detailed budget proposals on May 2.
A senior EU official said the debate in Luxembourg will be of a "political nature" and avoid specific figures.
He said it would cover "conditionality" but would not go into detail other than to say it would not be linked to admitting refugees.
Machnig also called for cohesion funds to be distributed to all regions, not just poorer ones.






















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