EU Summit on the Economic Recovery Plan

The President of the European Commission, Ursula von der Leyen, has asked leaders to take advantage of the telematic summit this Friday to advance towards an agreement on the economic recovery plan and has warned them that it is urgent to reach a pact as soon as possible : “We cannot afford any delay.” Her urgency has been replicated in the same morning by other essential names in the European machinery, also of women: Angela Merkel and Christine Lagarde. While the German chancellor has warned against a recession only comparable to that of World War II if unity breaks, the ECB president has warned European leaders of risks in the markets if an agreement is not reached.

The meeting by videoconference of the Heads of State and Government has started on time at 10:00 and the German has launched a recorded message on social networks in which he has defended that the proposal of the Community Executive to create a fund of 750,000 million is “ambitious and balanced”.

It is assumed that at least one more summit will be necessary in July to achieve the pact
“Along with the long-term budget (MFF) it is a huge stimulus of 1.85 trillion. It not only helps the countries most hit by the virus, but also those whose economies have been hit indirectly by confinement,” he stressed. the president of the Commission. In her opinion, the EU “must now invest and make reforms to get out of the crisis.” The reconstruction fund, he continued, is intended to “support Europe’s resilient, sustainable and digital recovery”: “In other words, it will help Europe modernize.”

“It is an opportunity that we cannot afford to miss. I want a Europe better prepared to overcome storms and give future generations a home to follow. I look forward to today’s debate convinced that, to be successful, we must focus on the common framework, we cannot allow us no delay, “he warned.

On the same morning, the president of the European Central Bank, Christine Lagarde, warned that the current calm of the markets is linked to an expectation about the European recovery agreement, and that it could volatilize if a pact is not reached.

For her part, Angela Merkel has alerted her counterparts in the EU countries facing the biggest recession since World War II, which would lead to “very difficult times.” The German chancellor has urged leaders to reflect on the meaning of this issue, and the imperative that a recovery fund be approved before the end of the summer.

Collective responsibility and commitment
In a similar vein, the President of the European Council, Charles Michel, has highlighted the “collective responsibility” that the Heads of State and Government now have to agree on an economic stimulus package. “Now is the time to commit,” he said on Twitter.

EU leaders hold a first contact on Friday regarding the recovery plan and the community budget for the next seven years in a session for which no agreement is expected. On the other hand, it is assumed that at least one more summit will be necessary in July to achieve the pact, which needs the approval of all the capitals.

The block continues to be divided between a North (Sweden, Austria, Denmark and the Netherlands) that seeks to reduce the global size of the reconstruction fund, increase the proportion of loans to the detriment of direct transfers, change the distribution key and reduce its duration. and a broader bloc led by France, Germany, Spain and Italy, closer to the original Brussels approach.

The Spanish approach
The Government of Spain, for its part, considers the proposal of the 750,000 million fund as “a starting point to start the negotiation”, which must begin “as soon as possible with the aim of reaching an agreement during the next month of July” .

The agreement, considers the Executive led by Pedro Sánchez, must be “ambitious and rise to an unprecedented crisis.”

This Friday’s meeting is the first in which the Heads of State and Government can jointly discuss the proposal presented by the European Commission on May 27 for the creation of a recovery fund endowed with 750,000 million euros.

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EU Summit on EU Summit on the Economic Recovery Plan Economic Recover - /10

Summary

The President of the European Commission, Ursula von der Leyen, has asked leaders to take advantage of the telematic summit this Friday to advance towards an agreement on the economic recovery

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