At the conclusion of a four-day marathon summit that was extremely tense, the 27 European leaders reached yesterday a historic plan to support the economies of their countries affected by the "Covid-19" epidemic, funded for the first time by a common debt.
The package, with a total value of 750 billion euros, was agreed upon after intense and arduous negotiations, during which the Hungarian Prime Minister brandished a veto, The Hague and Vienna stubbornly resisted a very generous plan in their view, while French President Emmanuel Macron raised the tone in anger.
Macron announced during a press conference with German Chancellor Angela Merkel, "An important stage has been skipped", while Merkel, whose country currently holds the rotating presidency of the bloc, considered that the agreement "is a response to the biggest crisis facing the European Union since its establishment."
Also, Spanish Prime Minister Pedro Sanchez praised, during a separate press conference, a "great plan for Europe", considering it "a real Marshall Plan."
The President of the European Council, Charles Michel, who supervised the summit, said that the negotiations were "difficult, in a very difficult moment for all Europeans".
The summit lasted more than 90 hours, and almost exceeded the historical record set by the Nice Summit in 2000, which was devoted to discussing reform of European institutions and lasted about 92 hours.
However, criticism arose over the size of the concessions to reach the plan, especially from the young environmental activist, Greta Tonberg, who tweeted in frustration.
She wrote, "As expected, the European Union Council summit produced some beautiful words and some incomplete, vague, incomplete goals that are almost impossible to track, and a complete denial of climate emergencies."
In support of the historically stagnant European economy, the plan includes a package of 750 billion euros that the European Commission can borrow on the market. This amount is divided between 390 billion euros of aid and 360 billion euros of loans.
Aid is given to countries most affected by the "Covid-19" epidemic, and it represents a shared debt that the 27 countries must pay collectively. As for loans, the beneficiary countries must repay them.
The plan is added to the European Union's long-term budget for the period 2021-2027, amounting to 1074 billion euros, to be distributed to 154 billion euros per year.
Common debt is the first measure of its kind approved by the Union, and based on a French-German proposal that clashed with strong opposition from the "economic" countries, namely the Netherlands, Austria, Denmark and Sweden, and Finland joined.
The Dutch Prime Minister, Mark Rutte, who leads the economy, emphasized at the conclusion of the summit that this joint loan does not constitute the beginning of a "permanent transfer union" of wealth from north to south, which is precisely what he warned before the negotiations.
The "economic" countries have long threatened to thwart the economic recovery plan that particularly benefits southern countries like Italy and Spain, which are the countries worst affected by the "Covid-19" epidemic, but their northern partners consider them extremely lenient in financial terms.
To overcome these reservations, Charles Michel was forced to review his basic proposal and provide guarantees for him.
After Berlin and Paris called for the allocation of 500 billion euros in aid, this amount was reduced to 390 billion.
European Central Bank Director Christine Lagarde welcomed the plan.
Significant cuts were also recognized in the contributions of the economies of the European Union, which considered their net share of the European Union budget to be disproportionate.
And Charles Michel said, "For the first time in European history, the budget is linked to climate-related goals. For the first time, respect for the rule of law becomes a condition for granting funds."
The provision of aid has been linked to respect for the rule of law, according to a proposal submitted by the European Commission, which states "to take measures with the specified majority in the event of violations," as indicated by Commission Chairperson Ursula von der Line.