Despite Italy threatening to leave and other nations critical of the way European Union has been functioning, the EU leaders have taken an unprecedented decision to give a support to each other through a whopping €750billion towards Covid-19 recovery plans.
In one of the longest summits held in the last two decades, all the member nations have sealed their plans on long term spending to rise above the ashes that have (literally) buried each and every economy and taken them back into stone ages.
As 27 leaders from the various member nations racked their brains for a lasting solution, on the fifth day of the summit, a unanimous consensus was reached that as the meeting reached its fifth day, that they would work towards plans to jointly borrow debt that will be disbursed through grants on an unprecedented scale, in the face of an economic downturn not seen since the Great Depression.
As Emmanuel Macron, President of France called it a historic moment, so did Ursula von der Leyen, the European commission president, who said that the negotiations, that lasted more than 90 hours, had been “worth it” and that the EU could not be accused this time of doing “too little, too late”.
It is being said that the summit that does not usually last more than a day or so, stretched on as leaders of two nations Luxembourg and Ireland didn’t seemed to be pleased with anything. And then there was skirmish to follow from Austria, Denmark, Netherlands and Sweden. But overall delay was seen as worth it.
The breakthrough in the rebuttals from these ‘frugal states’ came through when The breakthrough followed a new proposal from the European Council Chairman, who was chairing the summit, Charles Michel who announced that the EU would pay out €390bn in grants and €360bn in loans from the new economic reconstruction fund.
The recovery fund has been able to see a truce come between Italy’s prime minister, Giuseppe Conte and his Dutch counterpart Mark Rutte. The recovery and resilience facility, the main economic stimulus to the coronavirus recession, is intended to help fund the EU transition to a net zero carbon economy by 2050, but environmentalists have criticised the vagueness of that promise. A specific fund to help countries ditch coal, the just transition fund, saw its budget slashed to €17.5bn down from a proposed €37.5bn.
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