European summit: bargaining and resistance around the recovery plan

The Twenty-Seven found themselves physically, Friday, July 17, for the first time since the start of the Covid-19 epidemic. They tried to clear the thorniest subjects at the Brussels summit, focusing part of their attention on the leader of the "frugals", the Dutchman Mark Rutte, the man to be convinced to reach an agreement on the recovery plan. to get out of a historic recession.

Like Chancellor Angela Merkel, whose country holds the rotating presidency of the EU, Frenchman Emmanuel Macron or even the president of the European Commission, Ursula von der Leyen, they all arrived masked for this meeting which takes place, for the first time in history, without journalists present in the huge European Council building, due to the coronavirus pandemic. "The good news is that no one has left the meeting room," said a diplomatic source. "Everyone is constructive," added a European source.

For France, 35 billion euros are at stake. For a greener, united and sovereign Europe, for jobs, I will do everything to convince our partners. https://t.co/Fs6UTbh9Aw

On the menu for negotiations: the post-coronavirus recovery plan, consisting of 250 billion euros in loans, and above all in grants amounting to 500 billion euros, which will not have to be reimbursed by the beneficiary States.

According to several European sources, the latter amount, which could be reduced, is at the heart of the talks. This recovery plan is backed by the long-term EU budget (2021-2027) of € 1,074 billion.

Summit chief mediator Charles Michel, President of the European Council, has tested several variants of his initial compromise proposal, the fruit of further discussions, and a new draft could be presented to the experts of the 27 after dinner, according to a European source.

The frugal countries

The discussions promise to be long and difficult, with the unanimity of the Member States being required. The summit, planned for two days, could extend until Sunday. According to the diplomatic source, the discussions began with three subjects which were particularly crucial for the rest of the summit: the overall amount of the plan, how the reforms undertaken by the main recipients of aid - mainly the countries of the South - would be controlled, and the question of "discounts" in contributions to states that pay more money to the EU budget than they receive.

The "frugal" countries, Netherlands, Austria, Denmark, Sweden, claim higher rebates. Their leader, the Dutch Prime Minister, Mark Rutte, arrived in Brussels estimating "with less than 50%" the chances of an agreement. Considered partially responsible for the failure of a summit in February devoted to the EU budget, this is the man to convince. He had a one-on-one interview with Charles Michel before dinner.

The "frugals", joined by Finland, expressed many reservations about the support plan which should primarily benefit Italy and Spain. These two countries, the most affected by the pandemic, are also considered the most lax in budgetary matters by the northern states.

Austrian Chancellor Sebastian Kurz insisted on the need to know "what would be the use of the money" given to countries in difficulty. The reform demands (labor market, pension system) of the northern states make those of the south jump, anxious to be forced to submit to a program imposed by others, like Greece at the height of the crisis. the euro zone.

To better control the national plans, in exchange for the money released, Mark Rutte went so far as to request that they be validated unanimously by the Member States (and not by a qualified majority, as Charles Michel planned).

Another delicate subject already raised: the link between the payment of money and respect for the rule of law, for the first time included in an EU budget. Poland and Hungary, which are the subject of procedures within the Union because of attacks on the independence of the justice system or fundamental rights, are holding back.

In this great bargain, the German Chancellor Angela Merkel, who rallied to the idea of ​​a common debt, raises a lot of hope. Celebrating its 66th anniversary on Friday, it was showered with gifts: bottles of burgundy wine, Belgian chocolates, Bulgarian rose oil and even ... a conductor's baton.

With AFP

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