The leaders of the European Union (EU) member countries are meeting for talks on rescue plans of worth $858 billion to breathe life into economies ravaged by the impact of the coronavirus outbreak after a meeting a day earlier that ended without a deal.
With 27 countries at odds on several issues, including the overall size of the stimulus package, the criteria for the distribution of money among the member states, and how to supervise the expenditure is yet to iron out. However, reaching an agreement in the meeting is far from guaranteed.
On Friday, the leaders of the EU discussed a plan proposed by Charles Michel, the President of the European Council, that outlines a recovery package of $858 billion and a $1.14 trillion long-term budget for 2021-2027.
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After the Friday meeting, the officials said that a camp of wealthy northern European countries led by the Netherlands insisted on access to recovery funds in the face of opposition from France, Italy, Spain, Germany, and other Eastern European states.
The recovery fund under discussion is worth $858 billion that will be funneled mostly to the Mediterranean coast countries, which are worst affected by the pandemic outbreak. RushHourDaily reported that the 27 members remained at odds oversize of the fund, the split between grants, and repayable loans in the recovery package.
Mark Rutte, the Dutch Prime Minister, demanded that one nation could block payouts from funds if countries back out from economic reform. Meanwhile, Mateusz Morawiecki, the Polish premiere was even more gloomy.
Morawiecki took to twitter after the Friday meeting ended and said that there are major differences among the member states. He further added that it is highly probable that they would fail to reach an agreement in the Saturday meeting.
German Chancellor Angela Merkel, who also celebrated her birthday in Brussels around the negotiating table, also cautioned on the chances of reaching an agreement, describing it as ‘’very difficult negotiations’’.
Viktor Orban, the Prime Minister of Hungary, who is often accused by critics of stifling the media, threatened to veto the entire proposal over the mechanism that would freeze out nations that fail to live up to democratic standards.
The specter of months of hardship and discontent is looming, with most of the EU economies deep in recession and immediate relief measures running out. Demitarian coast countries need recovery financing to prevent their economies from taking over greater burdens of debt.
