Fears that the EU's very foundations and cohesion are being threatened by a Polish rejection of Brussels' legal supremacy overshadowed a summit of the bloc's leaders on Thursday.
The gathering — originally called to examine ways for Europe to cope with a global energy crunch — exposed deep east-west divisions and dug-in positions that presaged an escalating confrontation in the months ahead.
The seriousness of the row was voiced by several leaders as they arrived, with most emphasising “dialogue” to defuse the situation before it blew up into a political and legal crisis.
“It's very clear that a red line has been crossed,” said Belgian Prime Minister Alexander De Croo.
It was “a shame”, he said, that so much summit time had to be taken up on the matter, but it was necessary “because this discussion really goes to the heart of Europe".
Dutch Prime Minister Mark Rutte and his Finnish counterpart Sanna Marin both said they had to get “tough” with Warsaw, while Austria's Chancellor Alexander Schallenberg said Poland cannot “cherry-pick” EU laws.
Several leaders said Brussels should not release 36 billion euros ($42 billion) in pandemic-recovery money that Poland badly wants while the issue was unresolved.
A few said all EU budget money for Warsaw should be subject to an untested “conditionality” mechanism tying disbursement to member states upholding rule of law.
As he arrived, Polish Prime Minister Mateusz Morawiecki showed no sign of backing down.
While he said he was “ready for dialogue” he stated: “We won't act under the pressure of blackmail.”
He stood by an October 7 ruling by his country's Consitutional Court that declared EU law could only apply in a few, specific areas, with Polish law prevailing in all other national matters.
EU leaders, officials and diplomats see that verdict as a gambit to justify moves by Mr Morawiecki's populist government to get rid of independent judges and replace them with ones controlled by his ruling Law and Justice (PiS) party. They accuse Warsaw of rolling back EU democratic norms.
Mr Morawiecki reiterated his belief that the EU was overreaching in its influence over member states, trampling their sovereignty in a way that would lead to “anarchy” and “chaos” if unchecked.
He found support from Hungarian Prime Minister Viktor Orban, who called the pressure on Poland a “witch-hunt”.
“The Poles are right,” he said, and added that “we are going to support the Poles — there is a devious abuse of authority happening".
In a bid to head off the dispute careening out of control, key leaders hastily organised one-on-one meetings with Mr Morawiecki in the two hours before the summit started.
French President Emmanuel Macron — who spoke with the Polish leader as soon as both touched down at Brussels airport — urged Mr Morawiecki to enter dialogue “to find a solution in line with our principles and common rules,” an Elysee official said.
German Chancellor Angela Merkel and Spanish Prime Minister Pedro Sanchez followed up with their own separate meetings.
European Commission chief Ursula von der Leyen, who publicly clashed with Mr Morawiecki on the issue this week on the same podium in the European Parliament, said the Polish ruling added “a new dimension” to the dispute over rule of law.
“We all have to take a responsibility when it comes to protecting our fundamental values,” said Ms von der Leyen, who heads the executive tasked with protecting the EU's treaties.
The summit's convener, European Council President Charles Michel, emphasised the need to find a solution.
“We are firm on the principles of rule of law. We feel that we have tools — legal tools, institutional tools — that we should use. But we think also that we must be committed to the dialogue,” he said.
Ms Merkel — attending what could be her last EU summit before handing Germany's reins over to a new government following September elections she did not contest — said she did not want to see the row end up before the European Court of Justice.
“A cascade of legal disputes before the European Court of Justice is not a solution to the problem of how the rule of law can be applied,” she said.
The European Parliament, however, is already gearing up for legal action to force the Commission to use the conditionality mechanism on Poland.
But the Commission is taking its time. It stresses that a high burden of proof is needed if the matter goes to court.
Already the European Court of Justice is using an expedited procedure to decide the legality of the mechanism itself.
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
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'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The bio
Date of Birth: April 25, 1993
Place of Birth: Dubai, UAE
Marital Status: Single
School: Al Sufouh in Jumeirah, Dubai
University: Emirates Airline National Cadet Programme and Hamdan University
Job Title: Pilot, First Officer
Number of hours flying in a Boeing 777: 1,200
Number of flights: Approximately 300
Hobbies: Exercising
Nicest destination: Milan, New Zealand, Seattle for shopping
Least nice destination: Kabul, but someone has to do it. It’s not scary but at least you can tick the box that you’ve been
Favourite place to visit: Dubai, there’s no place like home
