EU still willing to hold budget talks with Poland says German Chancellor

ALEXANDER BECHER/PAP/EPA

European Union leaders will continue to talk to Poland and Hungary about the EU’s budget despite it being vetoed by the two Central European states, German Chancellor Angela Merkel has said.

Hungary and Poland blocked the 2021-2027 budget and a recovery plan on Monday because access to funding would be conditional upon respecting the rule of law.

"There is a consensus on the EU budget, but not on the rule of law mechanism," Merkel said after a meeting with EU leaders late on Thursday.

"This (veto) means (...) we must continue talking with Hungary and Poland," the German Chancellor said.

She did not want to speculate on how the question with Hungary and Poland could be resolved.

Late Thursday, European Union leaders discussed briefly the veto by Poland and Hungary and decided to hold another summit in order to give more time to reaching an agreement.