Normally, the Chancellor presents for your birthday would be different. But Angela Merkel is this 17. July, in the circle of her 26 European counterparts will have to spend, and the festive mood is not to be expected. The dispute about the amount and modalities of the 750-billion-Euro Corona-reconstruction-Fund will be fierce. The negotiations are complicated by the fact that at the same time, nearly 1.1 trillion Euro EU budget is on the table. This combination provides plenty of starting points for blackmail, trick, rich in computing and the arts, and political Posturing.
The compromise proposal
After months of video conferences will be negotiated again for the first Time in person, because for an agreement there needs to be numerous Two – and three talks on the sidelines of the summit. Under the four-eye, Angela Merkel must try, as the EU Council presidency in this half of the year, the brawlers and to bring your desires to a common denominator.
The permanent President of the Council, Charles Michel, to write to the summit with a serious tone, suggested in his invitation: “An agreement is essential – for the benefit of our citizens.” And the Belgians represents “hard work” in a view. To build between the conflicting positions of the bridges, he had submitted in the previous week a compromise proposal. In EU Jargon the “negotiating box is called”, because movable components are included, which can be combined to offered a Compromise together.
Michels package contains the proposal of the EU Commission for a reconstruction Fund of 750 billion euros, which is a third higher than the German-French Plan of may. Two-thirds of this sum is to be paid in the Form of grants, the Rest as loans. For the first Time in the history of the EU, the Commission should be allowed to take debt on the financial market. The money will then be out of the budget and a new own resources – revenue, which have yet to be decided, starting in 2026, to be repaid.
The funds must be spent for future projects, as well as the ecological and digital transition in the EU. You should not seep into the house, the member countries of the verse to keep. Here is ignite the dispute both at the level of the Fund as well as the conditions for the award of the money and the distribution.
A large part of the money goes to the countries of southern Europe, with Spain as the largest recipient. There, as in Italy, the slump in the economy will be around 11 percent this year. The EU have suffered from countries in the South, the consequences of the pandemic, more than the North, is undisputed. Nevertheless, there are on the distribution key criticism: “A country like Poland can almost expect three times of the growth loss from the EU funds, Ireland’s going out with just ten percent of its Corona-the damage is almost empty. Targeted to combat the crisis looks different,” says Friedrich Heinemann from the economic research Institute ZEW.
the regular EU was Contracted in turn, the budget for the next seven years, by around 25 billion euros. Thus, Charles Michel, wants to calm down the net-payers, the need to also compensate for the failure of the previous UK contribution to the Brexit.
on the other hand is, in turn, the European Parliament, on the barricades, which had clearly demanded more money. The SPD MEP Jens Geier speaks of a “under-funding”, which claimed the lives of research and infrastructure programmes for the victims. The EU Parliament must approve the budget at the end. However, it is doubted that the members reject the financial package, because they want the reconstruction funds, urgently.
The “Thrifty Four” and the control
As the spokesman for the “Thrifty Four” is the Dutch Prime Minister Mark Rutte. He was originally against the inclusion of common debts. Then he demanded that the money should only be for credits used. In contrast, Italy does not want to increase its immense public debt of around 130 percent, still more fought in front of all. If the Dutch grants at all to consider, then he wants to be the Parliament total control over the end use. He demands that every project, from the reconstruction Fund should be approved unanimously by all EU governments approved. The summit may end in failure this weekend.
Behind the Netherlands, the Austrian Chancellor, Sebastian will be a series of Short calls for restrictions on EU expenditure, Denmark and Sweden. The Swedish head of government Stefan Löfven has stated once, even a Veto, his country was conceivable, if the claims of “saving seeds” were not met.
The “Outlaw Four” and the rule of law
The Hungarian Parliament has decided that it will not agree to the EU financial package, if the procedure against Hungary due to the violation of the rule of law is not set. Critics rate this as a naked extortion. Prime Minister Viktor Orban announces his Veto for the case that the allocation of EU money should in future be bound to the rule of law. In the negotiation proposal for the summit, the relevant passage appears flushed, but soft.
join Hungary, Poland, the Czech Republic, Slovakia and part of Slovenia itself. The government in Warsaw is always in the car, in Prague, the head of the government EU puts money in their pockets and also to the neighbors, there is criticism. The EU is promoting since years with your money, the anti-democratic development in Parts of Eastern Europe, says the Green MEP Daniel friend and calls for a power word of Chancellor Angela Merkel. The Chancellor had your promise, you will stand up for basic democratic values, also with deeds. Diplomats in Brussels expect, however, is that it will allow the Corona-Fund is not a lack of the rule of law fail.
The “needy Three” and grants
The reconstruction Fund to help countries that have suffered most from the pandemic: Italy, Spain and Portugal. Especially in Rome, a veritable culture has flared up this fight. The Five-star party in the coalition government emergency loans rejected under all circumstances. You are a political insult, as well as pads or checks. Head of the government, Giuseppe Conte will have a home hard to sell a compromise solution. To the radical claim of the Netherlands, he say no.
During his Meeting with the Chancellor at the beginning of the week, the Italians warned that they could not allow the economic drifting Apart of the EU, which would endanger “the single market”. And Angela Merkel promised your guests “something Special, something Massive”. Can you redeem this promise?
“The roads are still far…”
“It will be difficult,” says Susi Dennison of the European Council on Foreign Relations, because some of the historical differences between net payers and receivers in the EU might break again. But the citizens would have a need for more cooperation. The heads of government should now look beyond the technical details, because any attempt at blackmail and selfish misstep will harm the EU and its future.
The crucial word is the most experienced among the 27 participants whose legendary art of negotiations, everything will hang here: “The roads are still far we need to go,” says Angela Merkel. Brussels is rumored that the summit will extend until Sunday and that it could still work in a start-up.
author: Barbara Wesel
*The post “EU summit: a Trick, a gamble, and blackmail” will be released by Deutsche Welle. Contact with the executives here.
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