A new proposal on a massive post-coronavirus recovery plan was submitted on Saturday to European leaders meeting at the summit in Brussels, giving pledges to the so-called "frugal" countries, which block any compromise, the Netherlands in the lead. This proposal by European Council President Charles Michel, obtained by AFP, was presented in the morning at a meeting between German Chancellor Angela Merkel, French President Emmanuel Macron and their Dutch counterparts Mark Rutte, Spanish Pedro Sanchez and Italian Giuseppe Conte, in the presence of the President of the Commission Ursula von der Leyen.
Its objective is to change the position of the four "frugal" states - the Netherlands, Austria, Denmark, Sweden - by offering them concessions, in particular on the distribution between grants and loans, as well as on the conditions which govern the payment of money. The new project still provides for a 750 billion euro plan, but now comprising 300 billion loans and 450 billion in subsidies - which will not have to be repaid by the beneficiaries - against 250 billion in loans and 500 billion in subsidies. initially. The "frugal" clearly prefer loans to grants.
Increasing discounts
It also provides a mechanism allowing a country which has reservations about the reform plan presented by another state in return for this aid to open a debate within 27 days, either before the European Council or before Ecofin, which brings together EU finance ministers. "This allows a state to raise the alarm, to trigger an additional discussion on the conditions of payment and to bring it to the political level," commented Eric Maurice, of the Schuman Foundation.
This idea responds to the wish of the Dutch Prime Minister, Mark Rutte, who demanded Friday that these national plans be validated unanimously by the 27, which de facto amounts to a right of veto. This request had been deemed "politically difficult to swallow" by a diplomatic source, which summarizes the position of a majority of member states.
Last concession: Charles Michel proposes to increase certain "discounts" granted to countries which pay more money to the EU budget than they receive, which benefits the four frugal states. The Hague, Vienna, Copenhagen and Stockholm demanded these additional discounts.
"A somewhat feverish atmosphere"
It is the first time in five months, due to the Covid-19 pandemic, that the Heads of State and Government - all wearing protective masks - have been physically in Brussels. According to Mark Rutte's own admission, the first day, Friday, ended "in a somewhat feverish atmosphere", "which is not really a good sign". In question, its position considered too hard on the control of funds, and more generally the reluctance of the other three "frugals" on this recovery plan, backed by the long-term budget of the EU (2021-2027) of 1.074 billion d 'euros.
These countries, joined by Finland, have deep reservations about this proposal, which should primarily benefit Italy and Spain, two states very affected by the pandemic, but which they consider to be the most lax in matters budgetary. The reforms demanded by the countries of the North (labor market, pensions, etc.) in return for aid are also making the Southern States jump, which fear being subject to a program imposed by others, like Greece in the past.
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