A talk between the EU leadership apparently got extended which yielded more than favorable results for their member nations. It involves a €750bn($859bn) in grants and loans in order to counter the financial strain encountered on the 27-member bloc. The talk saw a split as the nations got divided among the hardest hit nations by the virus and the “frugally” hit nations that were concerned about the economic costs.
Summit chairman Charles Michel said that the current moment was a “pivotal movement” for Europe in terms of negotiations. The deal further centers on a €390bn programme of grants to member states that were hit hardest by the pandemic. Italy and Spain will be the first recipient of the proposed package.
Furthermore, a package of €360bn low-interest loans which will be made available to other members of the bloc. The package is aimed at maintaining spending needs in the aftermath of lockdowns that were badly affected by public finances due to social distancing means.
The following package also involves that funds will not me misappropriated. Recipientswill have to submit spending plans to the EU and a majority of the states will be able to block ongoing or future projects.The current proposed package seems to now face technical negotiations my member states which will further need ratifications by the European Parliament.
The following package was reached after more than 80 hours of talks by the leadership. Mr. Michel, the president of the European Council, called it “the right deal for Europe right now”. Tempers were often flared during the negotiations. The “frugal” nations – Sweden, Denmark, Austria and the Netherlands, along with Finland previously opposed extending €500bn in grants.
The EU previously set a limit of €375bn on the package while other band of members including Spain and Italy set a limit of €400bn to the package.