Still no agreement in sight: Tough negotiations to Corona financial packages

After the dramatic economic collapse in the Corona-crisis, the EU States tried on Friday to put together a financial package in the trillions of dollars. The fi

Still no agreement in sight: Tough negotiations to Corona financial packages

After the dramatic economic collapse in the Corona-crisis, the EU States tried on Friday to put together a financial package in the trillions of dollars. The first day of a special summit in Brussels ended, however, late in the evening without any tangible results. On Saturday morning at 11 a.m., to be negotiated further.

On the table of the proposal for a 750-billion-Euro program for economic reconstruction and for the next seven-year EU budgetary framework of 1074 billion. Very many of the Details, however, are controversial.

After long hours of discussions in a big group it was welcomed in the early evening, at least, the Chance of agreement was maintained. Closer you came, but also said the Czech Prime Minister Andrej Babis. German Chancellor Angela Merkel and the 27 heads of state and government discussed in individual meetings, then again in a big round. But really, you didn't come apparently.

Shortly before the interruption of the talks, it was said by diplomats, the negotiations are in a difficult Phase. There is a blockage in the question of how the proposed billion-dollar economic stimulus program should be controlled and you should see if there is a way out. Details were not called. It was considered likely that the Netherlands will continue to insist that the funds can only be after the consent of all EU member States released.

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Great compromise

German Chancellor Angela Merkel had said at the start, the positions were very far apart and a breakthrough in the two-day Meeting was not certain. It needed to be "really a great willingness to compromise of all, to get something, what's in it for Europe". The President of France, Emmanuel Macron spoke of the moment of truth and called for solidarity and commitment.

EU-great-grandson, Charles Michel, highlighted at the outset of the summit the most difficult points of contention on the program. For hours it went to the extent of both programs, the dispute about discounts for large contributors to the EU budget and the conditions for crisis assistance, as it was called in EU circles.

Then three more POPs were debated points: the allocation of funds, new sources of money for the EU budget, such as taxes or levies, as well as the linking of EU funds to compliance with the rule of law. In all of these issues, the 27 EU-States were far apart.

For 2020, it is feared a collapse of the EU economy to 8.3 percent. With the 750-billion-program to be controlled against. The money is to be taken on behalf of the EU on the financial markets. Of which 500 billion euros will flow as grants to crisis countries and 250 billion as loans.

The of the pandemic, especially hard-hit countries such as Italy and Spain would be the most benefit. They penetrate to a rapid agreement. Italy's Prime Minister, Giuseppe Conte said, a compromise has to be suffered only in the interest of Italians, "a lot of suffering, but in the interest of all European citizens".

concerns of the "Thrifty Four"

concerns especially the so-called fuel-efficient Four, namely Austria, Sweden, Denmark and the Netherlands. The Dutch Prime Minister, Mark Rutte, has built high hurdles. He demanded that recipients of reforms before the disbursement of EU commitments to aid, but have already implemented. It had to give an "absolute guarantee". In the process, Rutte wants to give every country a veto.

this Position was Rutte at the summit, but quite alone, it was from a variety of sources. The Italian Agency Ansa reports that Spain's Prime Minister Pedro Sanchez had rejected Rutte violently.

Austria's Chancellor Sebastian Kurz said ahead of the Meeting, a solution was certainly possible. Things had moved to Austria last in the right direction. Too Short

"If the money will not be used in future investments, if it also goes Hand-in-Hand with the necessary reforms in States that are simply in their systems broken, or at least have big problems, then all of this will fizzle out." but stressed:

in addition to the "Thrifty Four" also have other countries reservations. The Czech Prime Minister Babis said, the views to the amount of the Corona-aid package are completely different. "So far, I don't have the feeling that we are approaching an agreement." Prime Minister of Poland Mateusz Morawiecki rejected the proposal, EU targets funds with Climate or to link pads to the rule of law.

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Updated Date: 18 July 2020, 04:26

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