Angry EU leaders struggle to save deadlocked COVID-19 recovery summit

[Wacha1]

Angry EU leaders struggle to save deadlocked COVID-19 recovery summit

Squabbling EU leaders battled on into the early hours of Monday to try and break the deadlock as their summit on a huge coronavirus rescue package stretched into a fourth day. Tempers flared in the conference room as frustration boiled over after a full weekend of haggling, with French President Emmanuel Macron upbraiding the Dutch and Austrian leaders and threatening a walkout.

The marathon talks chaired by EU Council President Charles Michel have failed to yield agreement over the size and rules for a 750-billion-euro ($860-billion) package of loans and grants to help drag Europe out of a recession caused by the pandemic. Over a working dinner with the 27 leaders on Sunday, Michel made a fresh effort to win over the coalition of "Frugals" -- the Netherlands, Sweden, Austria, Denmark and Finland -- which has sought to cut the size of the package and impose strict rules on how it is used. Amid growing fears the summit would collapse without agreement, Michel suggested cutting the grant portion of the deal to 400 billion euros -- down from his initial proposal of 500 billion -- and raising the loan part to 350 billion, up from 250 billion.

In a heartfelt speech over dinner, Michel reminded leaders of the devastating human cost of the pandemic -- 600,000 dead including 200,000 in Europe -- and urged them to come together to complete what he called a "mission impossible". "The question is this: are the 27 leaders, responsible for the people of Europe, capable of building European unity and trust?" Michel said, according to a copy of his remarks seen by AFP.

"Or will we present the face of a weak Europe, undermined by mistrust?"

Dogged Frugals

But a senior aide to Swedish Prime Minister Stefan Lofven said they were only prepared to accept a maximum of 350 billion euros as grants in the package, and even this was subject to conditions. "It's about the rebates, higher climate ambitions, and that we include a mechanism that makes so that countries will not be able to get money from the EU budget or this recovery package if they do not follow the principles of rule of law," Paula Carvalho Olovsson told the TT news agency.

Macron, who along with Michel and German Chancellor Angela Merkel has worked to find a compromise deal, could not contain his impatience as the Frugals stuck to their guns over dinner. According to witnesses the French leader banged the table, attacked Austrian Chancellor Sebastian Kurz for leaving the room to make a phone call and accused Rutte of behaving like former British premier David Cameron -- who took a hard line at EU summits but ended up leading his country into a referendum to quit the bloc.

Officials said Macron denounced the two leaders for insisting recovery funds take the form of loans with strict conditions attached, rather than grants -- and had said he would rather walk away than make a bad deal.

Veto demand

A European source said the Frugals used the dinner to demand massive hikes in the rebates they get on their EU contributions, piling up fresh tensions.

At the start of what she said was probably the "decisive" third day of the extraordinary summit on Sunday, German Chancellor Angela Merkel had said there were still many divisions among the leaders, and so it proved. Round after round of small group meetings went on all day as Michel, aided by Merkel and Macron, tried to drag the Frugals and the more indebted -- and virus-ravaged -- on board for a compromise, but progress was painfully slow.

Rutte wants member states to have a veto on national economic plans by the likes of Italy and Spain, in order to oblige them to pursue reforms to borrowing and their labour and pensions markets -- an effort that was angrily resisted by his Italian counterpart, Giuseppe Conte. Meanwhile, another stumbling block emerged when Hungary's hardline premier Viktor Orban accused Rutte of waging a personal vendetta against him and his country -- and vowed to prevent any agreement on efforts to tie EU spending to recipient countries' respect for EU standards.

(AFP)
Angry EU leaders struggle to save deadlocked Covid-19 recovery summit

Wacha watifuane, all change - Covid-19 inawarudisha wote kwenye level playing ground ule wizi wa kisasa hivi sasa ni mwiko.

 

[Wacha1]

Italy hawataki mchezo .... ..... ...

''EU leaders will meet again Monday as efforts to reach a deal on the 750 billion coronavirus recovery package spill into the fourth day. Dutch Prime Minister Mark Rutte wants member states to have a veto on national economic plans by the likes of Italy and Spain, in order to oblige them to pursue reforms to borrowing and their labour and pensions markets – an effort that was angrily resisted by Italy.''

 

[Wacha1]

EU nations clinch $2.1T budget, virus aid deal after 4 days

Credit: RAF CASERT and SAMUEL PETREQUIN, Associated Press

Global report: Trump says masks 'patriotic' as EU leaders agree deal

© Provided by Associated Press French President Emmanuel Macron, second left, speaks
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with German Chancellor Angela Merkel during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

BRUSSELS (AP) — Weary but relieved, European Union leaders finally clinched a deal on an unprecedented 1.8 trillion-euro ($2.1 trillion) budget and coronavirus recovery fund early Tuesday, somehow finding unity after four days and nights of fighting and wrangling over money and power in one of their longest summits ever.

With masks and hygienic gel everywhere at the summit, which was spread over five days, the 27 leaders were constantly reminded of the potent medical and economic threat the virus poses to their continent, and grudgingly committed to a massive aid package for those hit hardest by the pandemic.

© Provided by Associated Press Dutch Prime Minister Mark Rutte, left, speaks with Spain's Prime Minister Pedro Sanchez during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)
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To confront the biggest recession in its history, the EU will establish a 750 billion-euro coronavirus fund, partly based on common borrowing, to be sent as loans and grants to the hardest-hit countries. That comes on top of the seven-year, 1 trillion-euro EU budget that leaders had been haggling over for months even before the pandemic.

© Provided by Associated Press German Chancellor Angela Merkel, right, speaks with French President Emmanuel Macron, center, during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)
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“This was a summit meeting where I believe the consequences will be historic," said French President Emmanuel Macron. “It created the possibility of setting up loans together, of setting up a recovery fund in the spirit of solidarity."

German Chancellor Angela Merkel said, “We have laid the financial foundations for the EU for the next seven years and came up with a response to this arguably biggest crisis of the European Union."

With Macron and Merkel negotiating as the closest of partners, the traditionally powerful Franco-German alliance struggled for days to get the quarreling nations in line.

“The EU as a whole now has a big chance to come out stronger out of the crisis," said EU Commission President Ursula von der Leyen. “Tonight is a big step toward recovery."

At first, the grants were to total 500 billion euros, but the so-called “frugals” — five wealthy northern nations led by the Netherlands — wanted a cut in such spending and strict economic reform conditions imposed, and the figure was brought down to 390 billion euros.

The summit at the urn-shaped Europa Center laid bare how the nations' narrow self-interests trumped the obvious common good for all to stand together and face a common adversary.

Rarely had a summit been as ill-tempered as this one, and it was the longest since a five-day summit in Nice, France, in 2000, when safeguarding national interests in institutional reforms long was a stumbling block.

“There were extremely tense moments,” said Macron.

Still, considering every EU leader had the right of veto on the whole package, the joint commitment to invest and spend such funds could be seen as a success.

© Provided by Associated Press European Council President Charles Michel, left, speaks with French President Emmanuel Macron, second right, and Dutch Prime Minister Mark Rutte, second left, during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

The days and nights of brutal summiteering will surely have left many wounds between member states, but as history has proven, the EU has an uncanny gift to quickly produce scar tissue and move on.

“People have often accused Europe of being too little, too late. Here we demonstrated the opposite,” von der Leyen said. “This is an absolute record for a new budgetary instrument.”

© Provided by Associated Press Dutch Prime Minister Mark Rutte, left, speaks with French President Emmanuel Macron, center, and Spain's Prime Minister Pedro Sanchez during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)
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Even if Tuesday’s agreement was a giant leap forward, the European Parliament, which has called the moves of the member states too timid considering the challenge, still has to approve the deal.

But Tuesday was a moment to revel in the achievement itself.

“An extraordinary situation demands extraordinary efforts," Merkel said as the leaders pushed on with one of the bloc's longest summits ever. What was planned as a two-day summit scheduled to end Saturday was forced into two extra days by deep ideological differences among the 27 leaders.

© Provided by Associated Press From left, Finland's Prime Minister Sanna Marin, French President Emmanuel Macron and German Chancellor Angela Merkel attend a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

The coronavirus has sent the EU into a tailspin, killing around 135,000 of its citizens and plunging its economy into an estimated contraction of 8.3% this year. Spanish Prime Minister Pedro Sanchez insisted the adoption of an ambitious plan was required, with the crisis continuing to threaten the continent.

© Provided by Associated Press German Chancellor Angela Merkel, right, looks over papers with French President Emmanuel Macron during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)
The leaders mulled a proposal from the five wealthy northern nations that suggested a coronavirus recovery fund with 350 billion euros of grants and the same amount in loans. The five northern nations — the Netherlands, Austria, Finland, Sweden and Denmark — had long opposed any grants at all, while the EU executive had proposed 500 billion euros.

© Provided by Associated Press German Chancellor Angela Merkel, right, speaks with French President Emmanuel Macron, left, during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

The latest compromise proposal stands at 390 billion euros in grants.

© Provided by Associated Press European Commission President Ursula von der Leyen, right, speaks with Estonia's Prime Minister Juri Ratas during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

Dutch Prime Minister Mark Rutte and others also wanted a link to be made between the handout of EU funds and the rule of law — a connection aimed at Poland and Hungary, countries with right-wing populist governments that many in the EU think are sliding away from democratic rule.

© Provided by Associated Press German Chancellor Angela Merkel, right, speaks with French President Emmanuel Macron, center, during a round table meeting at an EU summit in Brussels, Monday, July 20, 2020. Weary European Union leaders are expressing cautious optimism that a deal is in sight on their fourth day of wrangling over an unprecedented budget and coronavirus recovery fund. (John Thys, Pool Photo via AP)

EU agrees on $2.1 trillion deal after marathon summit

4 days to sort out the mess.