The strong disagreements between the parties over the economic recovery fund and the EU budget for the next seven years have forced the President of the European Council, Charles Michel, to reconvene the Heads of State and Government of the European Union this afternoon.
The third day of the Council ended yesterday without results and with an increase in tension between the two parties, especially after a majority group of partners criticised the attitude of the northern countries (Netherlands, Denmark, Sweden, Austria and Finland), according to diplomatic sources quoted by Europa Press.
During yesterday’s negotiations, Michel presented a new proposal for the creation of a fund of 750 billion, of which 400 billion would be distributed (100 billion less than the Commission’s initial proposal) to the States in the form of direct transfers (compared to 450 billion the day before) and the rest in the form of credits.
The frugal countries have not accepted this idea either and have insisted on demanding a reduction in subsidies, a counter-proposal which, in the opinion of the other countries, would delay economic recovery. Charles Michel then proposed an intermediate solution, with 350 billion euros in subsidies (150 billion less) and 400 billion in credits.
In spite of the discrepancies, diplomatic sources assured the Efe agency that the more than twenty hours of negotiations on Sunday have opened a way for the agreement. The President of the Council will present today a new draft of the compromise.