the Chairman of The boss round, Charles Michel, depends on the expectations of the EU summit this Friday, as low as it goes. “Our ultimate goal should be to find a Deal as quickly as possible. Until then, there is still a long way,” wrote the presidency at the end of the summit participants in his invitation. “We’ll have to work on in the coming days and weeks hard.”
The informal Video of the summit of heads of state and government of the EU-tip is used only for the purpose of opinions and positions to exchange, really be negotiated to around 1.8 trillion euros in the draft budget of the EU Commission, and not, say EU diplomats in Brussels, to prepare the session.
“complex, but a simple”
Charles Michel and German Chancellor Angela Merkel that the conclusion of the initial special, and then again a personal summit meeting in July or August will be possible. “We will be successful if we lead the talks with the responsibility and the will, from this crisis United and strong to emerge,” says Charles Michel.
The Chancellor to convey as temporary Chairman of the Council of the EU in the next six months, and at the same time, the substantial financial Commitments to make, to be able to a compromise package. “The negotiation situation is complex, but perhaps also make them easier,” said Merkel at a meeting of the CDU/CSU parliamentary group in the Bundestag, she belongs to.
Translated, that means, the combined EU budget with a plan for the reconstruction of the times to the Corona is so unique and powerful that the 27 member States can not afford to lose in the usual haggling over details in the budget. In addition, time is of the essence. “The negotiations will be different this time than usual,” says a senior EU official.
“Sporty” schedule
the EU Commission and the member States agree that the Mega-Plan has to be adopted for the period from 2021 to 2027 at the latest in September of the parliaments, so that the business can make programs of the pandemic weakened economy in the European Union in the next two years again.
Due to the planned Borrowing by the EU have to be different than usual ratification by all 27 Parliament in the member States of the decisions. To create this in a few months, was “sporty”, said diplomats in Brussels. to bring
No common budget and reconstruction Fund to be created, could not afford to pay for the EU, German Chancellor Angela Merkel. That would be eligible for “the spawn of the non-action. And we all want to avoid,” said Merkel, according to participants at the group meeting in Berlin.
sticking points
at The Moment is not decided and all of the essential elements of the reconstruction Programme and the multiannual financial framework (MFF) are controversial.
volume: , The EU Commission proposes a building-Fund of 750 billion euros with the name “Next Generation EU”. Germany and France are in favour of a construction Fund of 500 billion euros.
The European Parliament calls for two trillion. Spain and other recipient countries can imagine 1.5 trillion as the target size for the building program. Add to this the regular EU budget for the next seven years (MFF) in the amount of 1.1 trillion Euro.
revenue: The EU Commission wants to raise the so-called own resources ceiling for the EU budget of one to two percent. With these financial guarantees of the 27 member States in the back, wants to borrow Ursula von der Leyen, the President of the Commission, then, for the first time in a big way on behalf of the EU 750 billion euros to the private financial markets. The reconstruction plan will be funded with loans to be repaid after 2028, with the next budget, and back again.
Still have not been agreed by all member States, to accept this debt, burdened mainly the next Generation in the EU. In the end, unanimity is required.
to The future German presidency of the Council insists that redemption in 2026 or 2027, in the context of the next budget period start. Thus, it should be indicated that the removal of the new debt is really serious, as EU diplomats in Brussels.
expenditures: of The 750 billion euros from the reconstruction program to be distributed to two-thirds as grants to the pandemic in hard-hit States. The last third should be loans to pay back the beneficiary again sometime. The funds are to be awarded in accordance with the normal rules of the EU budget, which means it will be promoted concrete projects and investments with verifiable results.
The recipient countries are not able to pump the money in their national budget, for example by reducing taxes. The program announced by the Italian foreign Minister, Luigi Di Maio of the 5-star populists. Italy and other potential recipient States fight back against strict conditions. The donor countries, particularly the Netherlands, insist on strict criteria and controls. According to initial calculations by the EU Commission, Italy would receive considerable 170 billion euros from the reconstruction program.
redemption: , The EU Commission proposes to redeem, the new joint debt of the European Union in the amount of 500 billion Euro from the common budget of the EU. This includes four new taxes on plastic waste, carbon dioxide, and digital revenues collected. Whether it is taxes, but ever, seeing many member States are skeptical. So far, such “own resources” for the EU were rejected, the Commission, always, because you mean more Power for Brussels.
The introduction of a digital tax for large Internet companies are also likely to fail because of the resistance of the United States. The Trump Administration has just canceled on Wednesday in negotiations. The new sources of money for the EU, not Commission, then the return would be financed payment due to higher contributions of the 27 member States.
Give and Take: , The unprecedented economic crisis of the pandemic and the outlet of the net payer of the United Kingdom from the EU to make a serious calculation, who must pay at the end what to do, very difficult. Even the EU budget Commissioner, Johannes Hahn, confirmed to DW that the budget was prepared on the basis of economic output by 2018. The Numbers have to be next year, adapted to, if the current data of the Corona-existence crisis.
it seems Clear, however, that Germany have to shoulder as yet economically strong country, the lion’s share of the EU budget is. Yet, its share was about 25 percent. The could increase to 33 to 34 percent.
“Germany is ready to contribute to a special solidarity contribution”, said a German government representative. “But we will not have to pay all open invoices at the end. The expected none.” Consequently, Germany is seeking, like other net contributors also get a discount on his contributions, to cap the rise. The discount would of course have to Finance the other member States.
a Lot of substance for hot distribution is not fighting, but still this Friday.
author: Bernd Riegert
*The contribution of “Casino Royale: The European Union Poker to Corona starts funds” published by Deutsche Welle. Contact with the executives here.
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