EU summit to the building Fund: a proposal for a emergency brake to solve Ruttes Blockade

at the beginning of the second day of the special summit of the EU recovery package comes movement in the stalled negotiations. Council President Charles Michel

EU summit to the building Fund: a proposal for a emergency brake to solve Ruttes Blockade

at the beginning of the second day of the special summit of the EU recovery package comes movement in the stalled negotiations. Council President Charles Michel presented on the Morning of a new compromise proposal. The Belgians, contrary to the concerns expressed by the Dutch Prime Minister Mark Rutte, who had blocked the negotiations on the first day, to a large extent. He is, however, maintaining the total volume of 750 billion euros. According to the proposal before the F. A. Z., the share of non-repayable grants easily from 500 billion euros to 450 billion euros to fall. The core of the total package, the building Fund, will rise from 560 billion to 625 billion euros.

Hendrik Kafsack

economic correspondent in Brussels.

F. A. Z. Twitter

in order To Rutte satisfy a Michel an emergency brake for the approval of the reform plans of the member States. The States are to draw up these plans, to be able to grants from the building Fund to get. Rutte had demanded a right of veto in the adoption of these plans. Only if there is a sufficient control, he could agree to the award of grants. According to the new compromise proposal, member States will have to adopt the reform plans and the disbursement of the funds by qualified majority. If a state is not, however, of the opinion that the plans are sufficient to deal with the EU Finance Ministers and, in extreme cases, the heads of state and government until the concerns have been "satisfactorily" addressed. The big question now is whether the Italian Prime Minister Giuseppe Conte accepted the. The had put up a fight on the first day of the summit ascent, together with Spain's Prime Minister, Pedro Sánchez, vehemently against the claims Ruttes. Both want the European Commission to a large extent autonomously on the reform plans decide.

Higher discounts for Denmark, Sweden and Austria

diplomats referred to the question of how the reform plans are monitored on Saturday morning as decisive for the success or failure of the summit. Open is also whether the other three of the "Thrifty four" EU countries, Denmark, Sweden and Austria, and Finland, to accept the height of the reconstruction package. The Austrian Chancellor, Sebastian Kurz was otherwise than in Public, behind closed doors, very tame, diplomats say. The three Scandinavian countries would be a very hard and offensive, and above all Denmark. Michel comes to meet them, so far, only to the extent that he offers to Denmark, Sweden and Austria, slightly higher discounts than previously envisaged. The German discount should remain at 3.7 billion euros in the year, the Dutch at 1.6 billion.

The criticism of the distribution key for the EU aid tackles Michel, in which he wants to assign a part of the assistance to the countries later. The Commission had used in its proposal by the end of may, especially the unemployment rate for the years 2015 to 2019 as the basis for the distribution of aid. So there was in fact no relation to the crisis. In addition, it led to the so far hardly any of the Corona-crisis made Poland to Italy and Spain, the third largest recipient. Michel now wants to distribute 70 percent of the money from the building Fund on the basis of the Commission proposal. 15 percent is to be distributed on the Basis of economic development this year, and 15 percent on the Basis of the development in 2021.

Updated Date: 18 July 2020, 10:20

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