EU leaders reach Covid recovery deal after five-day summit
EU leaders have reached an agreement on a €750bn pandemic recovery scheme following four nights of discussions. It will allow for grants and loans to be sent to all 27 member states to counter the impact of the coronavirus outbreak and allow for rapid recovery.
The grants will be disbursed on an unprecedented scale as experts predict the worst economic downturn since the Great Depression.
The deal centres on a €390bn programme of grants to member states hardest hit by the pandemic, such as Italy and Spain.
A further €390bn will be dispersed equally among the other members of the bloc, with very-low interest repayments.
Following the deal’s announcement, the euro rose against the dollar on the news to stand at $1.145 in a move French president Emmanuel Macron described as a “historic day for Europe.”
The summit began in Brussels five days ago, with over 90 hours of talks happening between heads of EU bloc states, the longest on record since 2000.
The package still requires approval and ratification by the European Parliament before the grants can be sanctioned.
The agreement was met following a long weekend of talks, during which the member states were constantly split between those hit the hardest by the outbreak and those more concerned about the overall costs.
The original limit was said to be capped at €375bn, in addition to conditions such as the right to block requests. Other members, such as Spain and Italy, did not want to go below €400bn as they had perhaps been hit the hardest of all the member states.
The agreed-upon amount was suggested as a compromise, with the supposedly frugal nations being swayed by promises of rebates on the EU budget contributions.
EU appear to have rejoiced at the settlement being reached.
European Commission President Ursula von der Leyen tweeted. "Today we've taken a historic step, we all can be proud of. But other important steps remain. First and most important: to gain the support of the European Parliament. Nobody should take our European Union for granted."
Dutch PM Mark Rutte, leader of the “frugal group” welcomed the agreement but pointed to the divisive nature of the talks. “We are all professionals, we can take a few punches,” he told reporters.
The deal is to be funded through various measures. The €750bn will be borrowed from international markets and the EC will then distribute the aid.
The deal was reached alongside a plan for a €1.1bn budget for the next seven years.
The UK, which has recorded more cases and deaths from coronavirus than any other EU country, will not be included as a part of the deal as they officially left the EU in January.
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