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| - Poland's deputy prime minister said on Wednesday that a new proposed agreement on the future EU budget meant that the reasons for Warsaw and Budapest to veto it have "practically disappeared". An EU diplomat who spoke to AFP on Wednesday on condition of anonymity declined to confirm a deal but also did not rule out that one was in the pipeline, saying "we are waiting for a final confirmation". The comment came a day after Hungarian Prime Minister Viktor Orban said there was "a good chance" of a deal being struck at Thursday's European summit on the EU's budget and coronavirus recovery fund. Budapest and Warsaw last month blocked the EU's 1.8-trillion-euro ($2.1-trillion) budget and virus rescue package over its tying of funds to respect for the rule of law. Both governments are accused by Brussels of rolling back democratic freedoms, notably judicial independence in Poland and press freedom in Hungary. "The reasons for Poland and Hungary to take a different position from other EU countries have practically disappeared," Poland's Deputy Prime Minister Jaroslaw Gowin told reporters in Warsaw on Wednesday. "The position of the German (EU) presidency is also similar to the position of Poland and Hungary, but of course unanimity is required for an agreement at the European Council," said Gowin, who leads a junior coalition party in Poland's nationalist government. "For now, there's agreement in the Warsaw-Berlin-Budapest triangle. I believe that this agreement will also cover the other 24 capitals of Europe," he added. Berlin is taking the lead in the talks as it currently holds the six-month rotating European Union presidency. Poland's government spokesman Piotr Muller told AFP later on Wednesday that "budget negotiations are ongoing", adding that "there is a chance for an agreement" at tomorrow's EU summit if the conditions presented by Poland and Hungary are accepted. But there was no hint of a compromise in Berlin on Wednesday. Speaking in parliament, German Chancellor Angela Merkel declined to predict whether a quick solution could be found in the dispute: "Unfortunately I can't tell you whether it will work or not". An EU diplomat in Brussels told AFP that member state ambassadors would "hold an extraordinary meeting this (Wednesday) afternoon on the EU budget" but declined to elaborate further. Both Hungary and Poland have threatened to veto the budget and Covid-19 recovery fund if the German EU presidency presses demands that the bloc's member countries respect rule-of-law criteria in order to receive funds. Orban expressed optimism about a deal during his Tuesday working visit to Warsaw, saying "we have a good chance to close this file this week at the summit on Thursday. "There is a centimetre that separates us," Orban said on Polsat News channel. The nationalist Hungarian leader however underlined that Warsaw and Budapest remained "on one side and that the German presidency is on the other. We have a chance at a Polish-Hungarian victory." Polish Prime Minister Mateusz Morawiecki said on Tuesday that Warsaw was sticking to its veto threat and was prepared for all scenarios. "We're prepared for months of talks and negotiations but we are also prepared for a possible provisional budget, so we're not ruling out any scenarios at this stage," Morawiecki said. bur-mas/lc
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