Solidarity or frugality? EU leaders discuss coronavirus plan
BRUSSELS (AP) — As they brace for the worst economic downturn since the Great Depression, leaders of the European Union's 27 member states are to discuss the bloc's future long-term budget and a multibillion-euro post-coronavirus recovery plan during a video summit Friday that is aimed at paving the way for a compromise later this summer.
Friday's Council meeting is just the first step in intense discussions that could culminate with a deal in July if member states overcome their differences. According to several EU officials and diplomats who spoke in the buildup to the meeting, the goal of this virtual reunion is very limited and a common declaration of good will would already be seen as success.
The 750 billion-euro ($825 billion) rescue fund proposed by the EU's executive arm to help member states' economies cushion the impact of the coronavirus is far from being unanimously welcomed.
The aid plan is a blend of debt mutualization, grants and loans. It has failed to gain the approval of a group of countries known as the Frugal Four — the Netherlands, Denmark, Austria and Sweden. They oppose issuing too much common debt to support the hardest-hit countries and argue that the money should mainly be handed out in loans instead of grants.
Another divisive topic relates to how the money will be allocated. The Commission proposed to work it out based on criteria including the size of population, gross domestic product per capita and unemployment. One top European diplomat said on the eve of the meeting that the range is too limited and should be adapted to take into account the real damage of the coronavirus.
Under the commission's plans, the recovery fund should be incorporated in the 2021-2027 EU budget. Two-thirds of the fund — a half-trillion euros — would take the form of grants. The plan is backed by...
