European Union: what to do with the 1.8 trillion Euro?

Council President Charles Michel confronted the EU heads of state and government at the start of the two days of the scheduled special summit of the reconstruct

European Union: what to do with the 1.8 trillion Euro?

Council President Charles Michel confronted the EU heads of state and government at the start of the two days of the scheduled special summit of the reconstruction package and the EU budget 2021 to 2027, with the most difficult points. The negotiations had begun with the questions of how much money the EU provides for the reconstruction after the Corona-crisis, what are the conditions that comply with the EU States, and what discounts to get the main contributors from Germany via the Netherlands to Austria, it said on Friday in Brussels. All other questions should be then clarified.

Hendrik Kafsack

economic correspondent in Brussels.

F. A. Z. Twitter

At the first summit since the outbreak of the pandemic, the leaders attend in person, it's a total of 1.8 trillion euros. The European Commission had proposed at the end of may, of 750 billion euros of debt, and to Finance the reconstruction. Add to that 1.1 trillion euros for the regular EU budget 2021 to 2027. German Chancellor Angela Merkel dampened at the start of the negotiations, the expectations. "We go all out with a lot of enthusiasm in the discussions, but I must say that the differences are very, very large and I can't predict whether we will come at this Time to a result," said Merkel, who plays after the Takeover of the rotating presidency of the EU through Germany from July to December, an important role of mediator.

A quick settlement is desirable, Merkel said more. "Still, you have to see reality in the eye. It really requires a great willingness to compromise of all, so that we get something that is in the face of this pandemic for Europe what the people of Europe is good and what is an appropriate response to the economic difficulties that we have.“

aid only under conditions?

The French President Emmanuel Macron said it was a "Moment of truth" for the EU. Commission President Ursula von der Leyen said: "today is The day of incredible importance." The Italian head of government, Giuseppe Conte called to think not only of finances, but also to the European values. An agreement is a citizen, in the interest of all the EU. "I am aware of the existing differences fully aware of this, but I have the firm decision that we must overcome it."

The Dutch Prime Minister, Mark Rutte, announced tough negotiations. He had practiced in the past weeks, together with the other three members of the "Thrifty Four", Austria, Denmark and Sweden, strong criticism of the recovery package. Disturb you mainly because that money should be passed as non-repayable grants to the States. Rutte stressed that he could accept grants only if the allocation of aid with concrete reform commitments linked to. "If loans are converted, up to a certain degree, in the subsidies, then reforms are all the more important, and the absolute guarantee that you have really taken place." The Netherlands demanded even a right of veto. The thrust, in turn, in countries such as Italy or Spain to resistance, do not want to get in the Euro-crisis reform requirements from Brussels.

Updated Date: 17 July 2020, 13:19

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