the European Commission has proposed the creation of a recovery Fund in the amount of 750 billion euros and was supported by a joint Franco-German proposal that most of the money – 500 billion was allocated as subsidies to the member countries most affected by the pandemic. Also at stake is a trillion Euro EU budget, known as the multiannual financial framework (MFF). The plan will be financed by total debt, which is the first for the EU.
According to the testimony of observers, not managed to declare the recovery plan, as once again began to show cracks in the unity of the European Union. The document was supported by Italy and Spain. Opposed by the so-called “lean countries” Austria, Denmark, Sweden and the Netherlands. They want this amount handed out in grants, and are afraid to combine debts with less solvent countries. Rich countries do not want to borrow from capital markets for the EU, knowing that to give it will have in it, but not to those countries who already have a large national debt.
Prime Minister of the Netherlands mark Rutte said that can “understand” the provision of the southern countries, but these measures must be consistent with a clear commitment to reform. For its part, the Austrian Chancellor wrote on Twitter that he was “positive steps”, but the positions of the parties on long-term EU budget “remain far apart”.
“Lean countries” insist on “emergency braking” of the allocation of funds in violation of financial discipline, She prefer countries severely affected by the coronavirus, took credit.
during the discussion, the meeting also discussed proposals, according to which the share of subsidies in the recovery Fund of € 750 billion will be reduced from 500 to 450 billion. The Netherlands welcomed new ideas, but confirmed that a deal is still far from completion. “We are not at the end of the discussion, but it at least creates a basis for negotiations,” Reuters quoted a senior EU diplomat.
