EU leaders agree on $2.1 trillion deal after marathon summit

After four days and nights of wrangling, exhausted European Union leaders finally clinched a deal on an unprecedented $2.1 trillion budget and coronavirus recovery fund early Tuesday, after one of their longest summits ever.

The 27 leaders grudgingly committed to a costly, massive aid package for those hit hardest by COVID-19, which has already killed 135,000 people within the bloc alone.

“Extraordinary events, and this is the pandemic that has reached us all, also require extraordinary new methods,”

German Chancellor Angela Merkel said.

To confront the biggest recession in its history, the EU will establish a 750 billion-euro coronavirus fund, partly based on common borrowing, to be sent as loans and grants to the hardest-hit countries. That is in addition to the agreement on the seven-year, 1 trillion-euro

EU budget that leaders had been haggling over for months even before the pandemic.

“The consequences will be historic,” French President Emmanuel Macron said. “We have created a possibility of taking up loans together, of setting up a recovery fund in the spirit of solidarity,” a sense of sharing debt that would have been unthinkable not so long ago.

Merkel added: “We have laid the financial foundations for the EU for the next seven years and came up with a response to this arguably biggest crisis of the European Union.”

Despite Macron and Merkel negotiating as the closest of

partners, the traditionally powerful Franco-German alliance struggled for days to get the quarreling nations in line. But, even walking out of a negotiating session in protest together over the weekend, the two leaders bided their time and played their cards right in the end.

“When Germany and France stand together, they can’t do everything. But if they don’t stand together, nothing is possible,” said Macron, challenging anyone in the world who criticized the days of infighting to think of a comparable joint endeavor.

“There are 27 of us around the table and we managed to come up with a joint budget. What other political area in the world is capable of that? None other,” Macron said.

At first, Merkel and Macron wanted the grants to total 500 billion euros, but the so-called “frugals” — five wealthy northern nations led by the Netherlands — wanted a cut in such spending and strict economic reform conditions imposed. The figure was brought down to 390 billion euros, while the five nations also got guarantees on reforms.

“There is no such thing as perfection, but we have managed to make progress,” Macron said.

Adriaan Schout, an EU expert and Senior Research Fellow at the Clingendael think tank in the Netherlands, said the unusually acrimonious and drawn-out talks ultimately produced a typical Brussels deal.

“The EU hasn’t changed. This is always what it’s about — finding compromises — and the EU always finds compromises,” he said. “And the compromise has been hard fought. There are checks and balances in it. We don’t know how they will work.”

The days and nights of brutal summiteering will surely have left many wounds between member states, but as history has proven, the EU has an uncanny gift to quickly produce scar tissue and move on.

“We all can take a hit,” said Dutch Prime Minister Mark Rutte. “After all, there are presidents among us.”