Recovery Fund: Council-Peer clash, halt to negotiations

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08 October 2020It is open dispute between the European Parliament and the Council on the negotiation to reach an agreement on the EU budget 2021-2027 and the Next Generation Eu (NGEU) plan, of which the Recovery Fund is the main pillar.

A stop that increases the risk of a postponement of the whole package and on which the European summit of next 15 and 16 October will be called upon to intervene.   

At the center of the dispute is Parliament's request to increase the appropriations foreseen in the budget proposal on as many as 15 expenditure items, including programs for digitization, work and social issues.

But also the aim of strengthening the link between compliance with the rules of the rule of law and the disbursement of European funds, a 'hot' issue that directly affects Poland and Hungary, countries under observation for the rules with which, according to the Commission, they were some fundamental democratic principles were questioned. 

That there was no favorable climate among the negotiators to reach an agreement was already understood at the beginning of the day, when a note from the EP described the mediation proposal put forward by the German EU presidency as "disappointing".

In the evening, the situation precipitated after the interruption of negotiations decided by the EP delegation.

A decision deemed "deplorable" by the German presidency.

Who accused the MEPs of little willingness to compromise.   

The reply of the EP spokesperson, Jaume Duch, is very close: "It is impossible to go forward in the absence of a valid proposal from the German presidency".

"Refusing to move" with respect to the initial positions, we read in a note released in the evening to the European Parliament, "is not negotiating".

We will only be able to sit around the table again when there is a real desire on the part of the Council to find an agreement. "   

The delegation of EP negotiators stressed that shortly after the start of the seventh round of negotiations with the Council and the Commission we realized "that they have no choice but to interrupt the meeting.

Progress has been made with concessions from both sides - reads the note released by the EP negotiators - but on the main issues we have already lost a lot of time without making progress.

No compromise will be possible as long as the Council continues not to consider the increase in the ceiling of the expenses foreseen by the multi-year budget and without placing the costs for the Next generation outside the budget ceilings ".