Belgian Prime Minister Charles Michel, left, with European Parliament President Antonio Tajani | Benoit Doppagne/AFP via Getty Images Belgian PM: EU needs ‘peer review’ system on rule of law Charles Michel calls on European countries to drop ‘nasty battle over sovereignty.’

EU countries should set up a mechanism to "peer review" on one another's adherence to rule of law practices, Belgian Prime Minister Charles Michel said Thursday.

In a speech before the European Parliament about the future of Europe — in which he also talked about digital tax, the bloc's budget and regional policy — Michel proposed that each country submit itself to a review of its adherence to rule of law standards by fellow EU members.

"This review will help to develop good practices and correct deficiencies, in a collegial way," Michel said. Poland and Hungary's relations with Brussels are under strain as a result of allegations that judicial reforms and civil society crackdowns are undermining the independence of their government institutions and national media.

"Rather than a nasty battle over sovereignty that pits member countries against the EU, I choose another path, that of political and democratic primacy in EU members and within the EU," Michel said.

The Belgian prime minister also called for increased EU spending on agricultural policy, security and the digital economy, and defended the idea of a multispeed Europe.

"It's not about dividing [the Union], but to the contrary it's about speeding up our decisions," Michel said, adding that major advances such as the eurozone and the Schengen zone of passport-free travel came from the bloc's "avant-garde."

Michel identified artificial intelligence and the digital agenda as "fields of opportunity" for Europe, but lamented the idea of a tax break for digital giants.

"How can I explain to my grocer that he is paying a higher tax rate than an internet giant who makes billions of sales on European soil?" he asked.

In his response to Michel's speech, European Commission President Jean-Claude Juncker called on Belgium to show "generosity" toward British officials working in the institutions who want Belgian nationality. "They deserve it," he added.

Former UKIP leader and MEP Nigel Farage reacted to Michel's European proposals by suggesting Belgians are only pro-European because Belgium "is not a nation, it's an artificial creation."

“There are two parts of Belgium — they speak different languages, they dislike each other intensely,” Farage said. "Belgium is not a nation, and maybe that’s why you’re happy to sign up to a higher European level."

Only around 100 MEPs — out of 750 — were present for Michel's speech. It comes ahead of local elections in Belgium in October, and a federal election next year.