EU nations clinch €1.8 tn budget, Coronavirus aid deal after 4 days
Brussels: 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, the 27 leaders were constantly reminded of the potent medical and economic threat the virus poses to their continent, and grudgingly committed to a costly, massive aid package for those hit hardest by COVID-19.
Extraordinary events, and this is the pandemic that has reached us all, also require extraordinary new methods, German Chancellor Angela Merkel said.
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.
The consequences will be historic," French President Emmanuel Macron said.
We have created a possibility of taking up loans together, of setting up a recovery fund in the spirit of solidarity," a sense of sharing debt that would have been unthinkable not so long ago.
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. But, even walking out of a negotiating session in protest together over the weekend, the two leaders bided their time and played their cards right.
When Germany and France stand together, they can't do everything. But if they don't stand together, nothing is possible," said Macron, challenging anyone in the world who criticized the days of infighting to think of a comparable joint endeavour.
There are 27 of us around the table and we managed to come up with a joint budget. What other political space in the world is capable of that? None other," Macron said.
At first, Merkel and Macron wanted the grants 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.
The figure was brought down to 390 billion euros, while the five nations also got guarantees that grants had to be linked to economic reforms.
There is no such thing as perfection, but we have managed to make progress, Macron said.
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.
