EU leaders take 'last steps' for recovery deal after days of squabbling

By Jan Strupczewski and Robin Emmott

 

Spain's Prime Minister Pedro Sanchez, France's President Emmanuel Macron and German Chancellor Angela Merkel look into documents during the first face-to-face EU summit since the coronavirus disease (COVID-19) outbreak, in Brussels, Belgium July 20, 2020. John Thys/Pool via REUTERS

 

BRUSSELS (Reuters) - European Union leaders appeared to be nearing agreement on a massive stimulus plan for their coronavirus-blighted economies on Monday after the chairman of their fractious four-day summit presented a new proposal to bridge gaps between them.

 

EU Council President Charles Michel said he was confident the compromises he had offered the 27 leaders could be the basis for a deal on the 750 billion euro recovery fund that many say is critical to dispel doubts about the bloc's very future.

 

"I know that the last steps are always the most difficult but ... I am convinced that an agreement is possible," he told reporters before heading back to the leaders.

 

Slow to coordinate their initial response to the COVID-19 pandemic and already weakened by Britain's departure from the bloc, a deal on the economic aid would demonstrate to eurosceptics that it can step up to a crisis and remain united.

 

"It has been a long summit and a challenging summit but the prize is worth negotiating for," Irish Prime Minister Micheal Martin said as the Brussels summit dragged into its fourth day - approaching the record length set at a 2000 meeting in the French city of Nice.

 

European nations have done a better job of containing the coronavirus than the United States after a devastating early few months that hit Italy and Spain particularly hard, collaborating on medical, travel and economic fronts.

 

The European Central Bank has pumped unparalleled money into economies to keep them going while the EU capitals hammer out their recovery fund.

 

Signs emerged that leaders of northern European Union countries were willing to compromise on a 1.8 billion euro ($2 billion) coronavirus stimulus plan on Monday as talks in Brussels extended to a fourth day. Ciara Lee reports

 

Diplomats said it remained uncertain that the leaders could put aside the rancour that stood in the way of a compromise over hours of haggling through the weekend.

 

Emotions ran high at a dinner the previous evening as a group of fiscally frugal northern nations led by the Netherlands stood their ground on the level of free grants within a proposed special recovery fund of 750 billion euros overall.

 

"STINGY EGOTISTS"

French President Emmanuel Macron lost patience in the early hours of Monday, banging his fist on the table in frustration at "sterile blockages" by the "frugals", two diplomats said.

 

Polish Prime Minister Mateusz Morawiecki also railed against the "frugals", branding them "a group of stingy, egotistic states that look at things very narrowly through the prism of their own interests".

 

Poland would be a top beneficiary of the recovery package, receiving tens of billions of euros in grants and cheap loans, along with high-debt Mediterranean-rim countries that have taken the brunt of the pandemic in Europe.

 

Despite the continued rhetorical skirmishing, Macron and German Chancellor Angela Merkel sounded optimistic that there could be accord on the stimulus package and, linked to it, the EU's 2021-2027 common budget of around 1.1 trillion euros.

 

Hopes for a deal to help address Europe's deepest recession since World War Two sent Italy's borrowing costs to their lowest since early March and pushed the euro to a 19-week high.

 

Michel proposed that within the 750 billion euro recovery fund, 390 billion should be non-repayable grants, down from 500 billion originally proposed, and the rest in repayable loans.

 

His document, seen by Reuters, also envisages that national plans to spend money would have to be approved by a qualified majority of EU governments. The Netherlands had pushed for a veto on aid for countries that backslide on economic reform.

 

Disbursement would also be linked to governments observing the rule of law. Hungary, backed by eurosceptic ally Poland, has threatened to veto the package if funds are made conditional on upholding democracy.

 

(Additional reporting by Kate Abnett and Yun Chee Foo in Brussels, and by Reuters bureaus across Europe; Writing by John Chalmers; Editing by Hugh Lawson)

 

-- © Copyright Reuters 2020-07-21

 

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What a patriot! Macron is wearing a mask with the French flag.

6 minutes ago, CLS said:

What a patriot! Macron is wearing a mask with the French flag.

 

same same the IS representatives, wearing black masks . . .

 

The can't be many people left in the UK that really think the EU is a good idea after what we have been seeing, well maybe these two

 

 

 

 

What i read in the Dutch press is that the Dutch get a higher rebate on payments and can keep more of the taxes. That is why we shifted a bit plus more rules for the countries that take the loans. So they have to change.

 

As for the Brits who say its good to be out of the EU i can partly understand but for the expats its bad as the difference between euro and pound is getting less and less. 

It's good to see the likes of Mark Rutte standing up to the wealth sharing project that the EU seems to be intent on. 

 

Why should the frugal nations continually bail out the likes of Greece, Poland and Hungary? It was supposed to be a trading bloc not a federalist transfer of wealth dominated by France and Germany.

4 hours ago, bartender100 said:

The can't be many people left in the UK that really think the EU is a good idea after what we have been seeing, well maybe these two

 

 

 

 

Were her enormous allowances as compensation for having to put up with Neil?

"Last steps" sound ominous?

4 hours ago, JonnyF said:

It's good to see the likes of Mark Rutte standing up to the wealth sharing project that the EU seems to be intent on. 

 

Why should the frugal nations continually bail out the likes of Greece, Poland and Hungary? It was supposed to be a trading bloc not a federalist transfer of wealth dominated by France and Germany.

 

... easier said than done, just visited a polish website and now my damn mouse cursor is gone ...!!

() 

 

11 hours ago, bartender100 said:

The can't be many people left in the UK that really think the EU is a good idea after what we have been seeing, well maybe these two

 

 

 

 

Similar to Farage's £91,000 p.a. salary as an MEP. Not to mention his expenses and £150,000 post Brexit transitional allowance.

 

He will also receive his MEP pension

 

Of course, he did have to pay some of his expenses back after being caught fiddling them!

 

So what is your point?

It’s good that we Europeans are helping each other.
 

It’s disappointing that we still don’t have enough balls to punish the Eastern-European populists and enemies of democracy. 

1 minute ago, welovesundaysatspace said:

It’s good that we Europeans are helping each other.
 

It’s disappointing that we still don’t have enough balls to punish the Eastern-European populists and enemies of democracy. 

It's better news the UK has saved 80 billion. Kerching.

45 minutes ago, 7by7 said:

Similar to Farage's £91,000 p.a. salary as an MEP. Not to mention his expenses and £150,000 post Brexit transitional allowance.

 

He will also receive his MEP pension

 

Of course, he did have to pay some of his expenses back after being caught fiddling them!

 

So what is your point?

Farage earned every penny of his money, if not for him we would still be in EU paying them millions, cheers Nigel and thanks, Knighthood needed for you

5 minutes ago, bartender100 said:

Farage earned every penny of his money, if not for him we would still be in EU paying them millions, cheers Nigel and thanks, Knighthood needed for you

Exactly, and a statue, I know a plinth going spare.

13 hours ago, CLS said:

What a patriot! Macron is wearing a mask with the French flag.

It also has a small Tricolour.

50 minutes ago, bartender100 said:

Farage earned every penny of his money, if not for him we would still be in EU paying them millions, cheers Nigel and thanks, Knighthood needed for you

Farage had one of the worst attendance records of any MEP. How is that earning his money?

 

He also had to pay back a large proportion of his expenses after being caught fiddling them How is that earning his money?

14 minutes ago, 7by7 said:

Farage had one of the worst attendance records of any MEP. How is that earning his money?

 

He also had to pay back a large proportion of his expenses after being caught fiddling them How is that earning his money?

 

 

 

BREXIT would not have happened without him.

 

 

 

He was therefore worth every Euro the EU paid him.

 

 

Fiddling expenses is a badge of honour in the EU.

14 hours ago, bartender100 said:

The can't be many people left in the UK that really think the EU is a good idea after what we have been seeing, well maybe these two

 

 

 

 

 

     Makes a change , from having Tories , with their snout in the trough ..

       

38 minutes ago, elliss said:

 

     Makes a change , from having Tories , with their snout in the trough ..

       

Not at all, political failures like Kinnock have been at it for years inside the EU.

1 hour ago, 7by7 said:

Farage had one of the worst attendance records of any MEP. How is that earning his money?

 

He also had to pay back a large proportion of his expenses after being caught fiddling them How is that earning his money?

What expenses?

10 minutes ago, nauseus said:

Not at all, political failures like Kinnock have been at it for years inside the EU.

 

 Of course, Nigel Farage , is also included in the Political failures , snout in trough list ..  

 

 

Edited July 21, 20205 yr by elliss

1 minute ago, elliss said:

 

 You mean , Nigel Farage ...

No I mean all of the Eurosponges that collect the serious money. 

Nope do not believe this.

I have it on good authority from many Brexiteers that the EU is in meltdown and will collapse any second now.

OK any second now.

What the hell is wrong with them they are supposed to be collapsing.

OK now.

Wait a second. I think I have been duped by these cunning Brexiteers into believing something about the EU which is absolutely not true.  

2 hours ago, 7by7 said:

Farage had one of the worst attendance records of any MEP. How is that earning his money?

He should have been there---working hard like his fellow MPs in London....................................

 

650 MPs elected 32 turned up this day.........I think 5 stayed awake....of course they all collected their pay-packet

 

20 minutes ago, sanuk711 said:

He should have been there---working hard like his fellow MPs in London....................................

 

650 MPs elected 32 turned up this day.........I think 5 stayed awake....of course they all collected their pay-packet

 

Now, now, now. I think you will find that they have their heads pressed against the speakers in the upholstery, so as not to miss the post perandial nuances of the debate!

Edited July 21, 20205 yr by herfiehandbag

16 hours ago, CLS said:

What a patriot! Macron is wearing a mask with the French flag.

Probably made in Germany!

17 hours ago, webfact said:

EU leaders take 'last steps' for recovery deal after days of squabbling

By Jan Strupczewski and Robin Emmott

 

 

"Alles klar, meine freunden, we bail the Greeks out again jah?

18 hours ago, CLS said:

What a patriot! Macron is wearing a mask with the French flag.

Macron wears 100% "Made in France" reusable mask., just like when he visited a school 

I see no reason to criticize him for supporting and promoting french manufacturing, therefore french jobs. 

 

Edited July 21, 20205 yr by Opl

2 hours ago, herfiehandbag said:

Now, now, now. I think you will find that they have their heads pressed against the speakers in the upholstery, so as not to miss the post perandial nuances of the debate!

This is the Lords. Not our diligent and conscientious Commons.

Is this 'loans' or 'grants'?

Can be added to the 1 trillion Euros of Target 2 debt.