EU Leaders Finalize A Deal On Post-Coronavirus Recovery Package
27 Countries Have Agreed To The Grant
The European Union leaders have made a deal on post-coronavirus recovery package after four consecutive days of discussions. This grant involves the sum of $859 billion in the form of loans and grants. This initiative will help the general population of the region to counter the deadly impact of the coronavirus pandemic.
These discussions saw a crack between countries that were most disrupted by the coronavirus outbreak in their area and other nations that are more concerned regarding the cost. This deal is the biggest combined effort of borrowing money ever agreed by the European Union. This deal on post-coronavirus recovery package is a pivotal moment for entire Europe.
A further $412 billion in the form of reduced interest loans will be available for several countries. This package deal will allow the member nations to be able to maintain their spending in the after-effects of coronavirus lockdowns that have severely affected the public finances. This also includes checking the funds so that they will not be mishandled or misused. All recipients also have to submit a spending plan to the European Commission. The majority of the states would also have the power to block any project that they see fit. The deal on post-coronavirus recovery package will be completely finalized after its technical negotiations by the members’ committee and revision by the European Parliament.
What leads towards this deal?
After more than 90 hours of discussion between the European Union leaders, the agreement deal on post-coronavirus recovery package was finalized. Sweden, Austria, Denmark, Finland, and Netherlands had opposed the extension of the deal from $572 billion in grants, but the French President accused those members of putting this recovery package in danger. The original finalized limit for grant money was $412 billion, but Italy and Spain did not want to go below $458 billion.
Another issue that was observed in the discussion meeting was the linking aid to the rule of law. Poland and Hungary, both countries, threaten to veto the project if the committee adopted a policy of withholding the funds from the countries that are considered to fall short of the democratic principles.
Funding for the recovery project
According to President Macron, this was a historic occasion for entire Europe. The deal on post-coronavirus recovery package shows collective solidarity and responsibility, along with belief in our standard future. This step will help the European Union gain support from the European Parliament. The European Commission President tweeted that we should be proud of this historic step as would along with showing nations not to take the European Union for granted.
The funding will be provided to various nations by the money, which will be borrowed from the international market in the total sum of $861.6 billion. This deal on post-coronavirus recovery package project was agreed alongside the upcoming seven-year budget of Europe, which is worth $1.26 trillion. The United Kingdom has recorded the most deaths due to the coronavirus pandemic since its outbreak in the region a few months ago and has now left the European Union due to which it will not be included in the deal.
The Prime Minister of Poland has boasted that they were successfully able to resist linking the recovery project money with their commitment to combat the increasing issue of global warming.
Few of the European Union leaders were frustrated by this recovery package due to far0fetching reasons which have now dissipated. The frugal four countries have damaged this deal with hard bargaining as those leaders have been put in a difficult spot. Some countries, including Italy, Spain, and Portugal, appear to be content by the grant of a smaller quantity.
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