EU special summit: Michel sets new compromise proposal on the table

the continuation of The summit meeting of EU heads of state and government to the Corona recovery plan has been delayed on Monday evening on several occasions. Shortly after seven o'clock, Council President Charles Michel presented a new compromise proposal, which he wants to achieve in the night from Monday to Tuesday, finally, after four days of an agreement. The reconstruction plan should be proposed according to the proposal submitted to the Frankfurter Allgemeine Zeitung, as the European Commission, 750 billion euros. The money is to accept the EU-Commission in financial markets, i.e. go into debt. Instead of the planned 500 billion euros will be allocated only 390 billion euros in the form of grants that do not need to pay back to the receiver. The rest of the 360 billion euros in loans.

Hendrik Kafsack

economic correspondent in Brussels.

On the reduction of subsidies, especially the "Thrifty had Five" EU States, the Netherlands, Austria, Denmark, Sweden, and Finland for that matter. To the sum of 390 billion the chiefs had agreed in the night to Monday. German Chancellor Angela Merkel, President of the French Republic Emmanuel Macron, and the southern Europeans had originally insisted on a limit of 400 billion euros, could not accomplish it. Meet Michel in the South now so that he supplements the build-up Fund forms the core of the reconstruction plan of 560 billion euros to 672,5 billion euros. In return, he is cutting other programs, all the grants to get the business for the transition to a more climate-friendly production. One of them would have benefits in addition to Poland, especially Germany.

The regular budget 2021 to 2027, on the following plan, to include 1,074 billion euros. So that the overall package remains at the planned 1.8 trillion euros. Contrary to Michel, the "saving seeds" the discounts on the contribution payments to the budget. Austria will now receive a discount of 565 million euros in the year, twice as much as before. Also the discount for the Netherlands, the President of the Council has increased to 1.9 billion euros. Germany should continue to get a 3.7 billion Euro.

Michel holds in the proposal to the Association of the aid from the Assembly plan and budget with the rule of law. States do not to the usual Standards, you need to expect cuts. 30 percent of the money should be reserved for the protection of the climate. The repayment of the EUR 750 billion in debt is scheduled to be completed by the end of 2058. 70 percent of the subsidies from the reconstruction Fund should be allocated in 2021 and 2022, and the remaining 30 percent in 2023.