The EU Summit Produced A Compromise Project Of The Foundation Of Recovery After The Pandemic
The President of the European Council, Charles Michel, sent all the leaders of the European Union final compromise proposals for the creation of the EU economic recovery Fund after the pandemic and expressed confidence that the summit will reach an agreement. This was stated by Michel, speaking to reporters on Monday at the end of bilateral consultations before the plenary session of the fourth day of the EU summit.
"I will now send all the leaders my new proposals, which were the result of our intensive consultations. We are going to have difficult negotiations, but I am convinced that an agreement is possible, " he said. Michel did not disclose the details of these proposals, which have yet to be unanimously approved by all countries at the summit's plenary session.
According to information from cross-sources in the EU delegations, the compromise proposals suggest leaving the amount of the Fund at €750 billion unchanged but reducing the amount of money that will be given out of it to EU countries free of charge. The grant component was reduced from €500 billion to €390 billion. Accordingly, another €360 billion will be provided in the form of concessional loans.
According to a source in the European Council, after reading the text of these proposals, the European leaders will proceed to a working dinner, after which they will continue negotiations in the format of a plenary session.
According to the original draft of the European Commission, all €750 billion of the EU's extra-budgetary economic recovery Fund should be raised by the EU in the form of loans from international and European banks and financial organizations with a commitment to pay them by the end of 2056.
In addition to the structure of the Fund, another problematic issue is the introduction of a legally prescribed condition for EU countries to comply with the rule of law (as assessed by Brussels) in order to receive money from the European Treasury. This is opposed by Poland, Hungary, and a number of other Eastern European countries.
The EU summit continues from the morning of Friday, July 17, and can set an absolute record for the duration of a European summit. At the moment, the longest summit in the history of the EU was held in Nice (France) from 7 to 11 December 2000. At that time, the leaders of only 15 countries were discussing a large-scale reform of the basic documents of the community, preparing for the reception of 10 Central and Eastern European countries at once, which took place in May 2004.