EU leaders meet to carve out plan

– European Union leaders were due to meet for a third day yesterday to try and agree on a giant post-coronavirus economic recovery plan as the global death toll climbed 600 000, an AFP tally showed.

The pandemic, which has spawned economic mayhem worldwide, also saw the G20 – the world’s most industrialised nations – consider extending debt relief for coronavirus-hit poor countries in the second half of the year.

EU leaders in Brussels remained deadlocked on Saturday over the Covid-19 recovery plan due to resistance from the Netherlands and its “frugal” allies: Austria, Denmark, Finland and Sweden.

European Council president Charles Michel was expected to propose another plan to the 27 leaders yesterday after his blueprints for a €750 billion (about

Brussels

R14.3 trillion) package were refused by the richer northern member states.

Michel’s latest proposal would keep the total recovery budget at €750 million, but shift the balance slightly from grants – down from 500 million to 450 million – to loans, which rise from 250 million to 300 million, according to a document seen by AFP.

Dutch Prime Minister Mark Rutte has insisted member states retain final approval of any funding – an effective veto – for recipients. He said EU oversight is necessary to oblige countries such as Spain and Italy to reform their economies to handle future crises better.

Michel’s latest plan includes a “super emergency brake” that gives any country a three-day window to trigger a review by all member states of another’s spending plans.

Meanwhile, Barcelona – one of Europe’s most visited cities – effectively went back into lockdown on Saturday. Spain’s Covid-19 death toll of 28 420 is one of Europe’s worst and the country has identified more than 150 new virus clusters across the country.

The regional government of Catalonia urged nearly four million residents of metropolitan Barcelona to stay home unless absolutely necessary – banning gatherings of over 10 people and shutting cinemas, theatres and nightclubs, after new cases tripled in a week.

The global death toll stood at 600 523 with 14.2 million cases worldwide. –

Latest plan includes a super emergency brake