EU unable to mask divisions over €750bn rescue package
DIVIDED European Union leaders appeared certain to head into a second day of marathon talks over a €750billion (£684billion) rescue fund to kickstart the bloc’s economy after the coronavirus pandemic last night.
Heads of state and government of the remaining 27 member states were downbeat over their chances of striking a deal as they met in Brussels for their first face-to-face summit since the crisis. By the evening, there was no sign of a breakthrough in negotiations over the unprecedented stimulus package.
Angela Merkel and Emmanuel Macron, the bloc’s two most influential leaders, have thrown their weight behind a European Commission plan to give €500 billion in grants and €250 billion in loans to the worst-hit countries.
They face strong opposition from the Netherlands, Austria, Sweden and Denmark. The “frugal four” want stricter conditions on the cash, which they would prefer to be in loans, and have baulked at the bolstered €1.1trillion EU budget for the next seven years. “The differences are still very big and I cannot yet predict whether we will reach a result. It would be desirable, but we must also face reality,” Mrs Merkel, the German Chancellor, said.
The French President said the summit was “a moment of truth” before holding talks with Mark Rutte, the Dutch leader. “It’s our European project which is in play here,” he warned. The Dutch argue that their parliament should be able to veto any payouts as it would mean taking on debt to fund spending elsewhere in the bloc.
Southern countries such as Spain, Italy and Portugal support the rescue plan, which needs the unanimous support of all 27 member states. They accuse the fiscally conservative northern countries of seeking to impose tough bailout-style conditions on them.