In Brussels, on the third day of negotiations at the EU summit on the Recovery Fund and the EU budget for 2021-2027, meetings were held to find mediation between the various positions. A meeting between the Southern European countries - Italy, Greece, Spain and Portugal - is now underway with the four frugal countries: Austria, Holland, Sweden and Denmark and the Finnish premier Sanna Marin. European diplomatic sources report it. Mediation on the allocation of subsidies from the Recovery Fund, at the EU summit in Brussels, has fallen below the 400 billion euro threshold , and one of the latest hypotheses circulated is 375 billion. But for the Frugals the figure is always too high and there is still a great distance to be covered in the negotiation,European diplomatic sources explain. However, it is pointed out, the agreement must contain the governance component, a reduction in the volume of the EU budget and a new increase in rebates.
The plenary session is expected to start at 17.30.
MICHEL'S MEDIATION. The President of the European Council Charles Michel is working to find a mediation on the subsidy of the Recovery Fund. The goal is to be able to put in black and white, in the new proposal, an amount that does not fall below 400 billion euros. One of the circulated hypotheses was 420 billion, but for the Frugals (Holland, Sweden, Austria, Denmark) and Finland, who reached the top with a position of 'zero subsidies', explain European diplomatic sources, reaching that threshold does not seem realistic. Charles Michel met German Chancellor Angela Merkel, French President Emmanuel Macron, Prime Minister Giuseppe Conte together with the Greek, Spanish and Portuguese Premieres and the President of the European Commission von der Leyen. Previously a meeting had taken place between Prime Minister Giuseppe Conte, Chancellor Angela Merkel, French President Macron, Spanish Prime Minister Sanchez and President of the EU Commission Ursula von der Leyen, while the declarations of the countries in favor of a understood as Greece, Bulgaria, Slovenia, Latvia, Poland.
"I would really find it a pity if we didn't reach a solution. I think we have a great responsibility and in my opinion it is also possible" to reach a compromise, but "for this to happen, everyone must move" from their positions. Thus the Austrian Chancellor Sebastian Kurz updating the press at the EU summit. " If anyone thinks they can dictate" the rules here or decide to go "home, then the summit may fail, but I hope this is not the way to go," added Kurz, with a reference to French President Emmanuel Macron who yesterday evening, according to some diplomatic sources, he would have given orders to return to Paris if there hadn't been a change.
"The negotiation continues. On the one hand the vast majority of countries - including the largest Germany, France, Spain, Italy - that defend the European institutions and the European project and on the other a few countries, called" frugal " ". This was written by Prime Minister Giuseppe Conte on Twitter, publishing a photo that portrays him with Merkel, Macron, Sanchez and Von Der Leyen.
Negotiation continues. On the one hand the vast majority of countries - including the largest Germany, France, Spain, Italy - that defend the European institutions and the European project and on the other a few countries, called "frugal". #EuCo pic.twitter.com/G1UcOb5lRj
- Giuseppe Conte (@GiuseppeConteIT) July 19, 2020"We all know that the economic situation is dramatic. There is great concern for the future, and we are negotiating" on the EU Budget 2021-2027 and the Recovery Fund "under the pressure that the agreement is a 'must'". So the Hungarian premier, Viktor Orban , this morning at a press conference in Brussels. "When we started the summit there were several dozen open questions, but now there are only four left. And I think there is a good chance of reaching an agreement, " he added. "Holland would like to create a mechanism to control southern countries' spending" from the Recovery Fund. " Basically it is a dispute between Italians and Dutch. We are on the side of Italy" . "We must give the money to the countries that need it and allow them to spend it as soon as possible to stabilize their economies, instead of engaging in long bureaucratic disputes - he added -. If we help them at the right time we will help them twice". "Some Dutch-led people would like to create a new conditionality mechanism on the rule of law. If the agreement is not made it is because of the Dutch leader" Mark Rutte "not because of me. It is he who started this affair. Dutch is really responsible for all the chaos of yesterday " at the EU summit. So the Hungarian Prime Minister Viktor Orban in Brussels, also remembering the match between the Netherlands and Italy on the balance between grants and loans from the Recovery Fund
An agreement "is possible", even if "there are still big issues" open: Premier Mark Rutte said it during the night, speaking to the Dutch press. Among the points yet to be clarified "the rule of law, the mix of subsidies and loans, the amount of subsidies, and rebates". Rutte spoke of "some progress" on the governance front, "but we are not there yet", and the discussion on the 2021-2027 budget remains open.
It is "still possible" that there is "no agreement" at the European summit. German Chancellor Angela Merkel said this on her way to the summit. "There is a lot of good will but also many different positions - he said -, I will make every effort but it is still possible that today we cannot get results". "Today we are entering the third day of negotiations and it is certainly the decisive one" to have a result, added the German chancellor.
"We have moved in the right direction, but there is still a long way to go tomorrow." Austrian Chancellor Sebastian Kurz wrote it on Twitter after the second day of negotiations between EU leaders on the Recovery Fund and the budget for 2021-2027.
"We need to find good compromises in the next few hours and I believe it is still possible, but these compromises cannot be made at the expense of European ambition" . French President Emmanuel Macron said this upon entering the European Council building on the third day of the EU summit. In a tweet Macron adds: We are collaborating with Chancellor Merkel for an unprecedented recovery plan, at the level of the crisis we are going through, at the height of the challenges for employment, the climate, our sovereignty and the values of Europe ".
" This EU betrays the dream of our fathers, it is only a merchant bank where few earn and many lose, Italy first of all. We paid over 200 billion to get little or nothing back, while others run: Great Britain for example (without waiting for Brussels) has given £ 10,000 to £ 25,000 in grants to every shop, business, restaurant and hotel. Not to mention that, on immigration, Italy has once again become the "refugee camp" all over Europe. What is the point of continuing to pay to be blackmailed and made fun of? ". The leader of the League Matteo Salvini says so.
MICHEL'S PLAN In addition to the reductions in non-refundable grants, the proposal proposes to give higher 'rebates', to approve a modified distribution key for European funding (60% of the funds distributed on the basis of GDP and unemployment of past 5 years, and 40% based on the decline in growth in the last year only) and the introduction of an 'emergency brake' on governance, with the possibility for countries to block the disbursement of funds and ask for intervention by the Council. In the new proposal of the President of the European Council, Charles Michel , the 'rebates' are increased, that is the reimbursements (corrective mechanism of the contribution to the Budget) for Sweden, Denmark and Austria. It is learned in Brussels. Sweden and Denmark get 25 million more than the previous proposal, going from 798 to 823 million respectively, and from 197 to 222 million. Austria goes 50 million more, going from 237 to 287 million. The rebates for Germany and the Netherlands are unchanged , compared to Michel's previous proposal. However, Italy continues to defend the centrality of the role of the European Commission. "The proposal on governance presented by Michel is a step in the right direction": this is how Dutch diplomatic sources comment on the new package on the table of the EU summit. But they point out that it is a package, "and there are many things still to be resolved. If we succeed it will depend on the next 24 hours".
