EU extends summit to Sunday after deadlock over Covid recovery plan | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Saturday
September 30, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
SATURDAY, SEPTEMBER 30, 2023
EU extends summit to Sunday after deadlock over Covid recovery plan

Coronavirus chronicle

Reuters
19 July, 2020, 08:20 am
Last modified: 19 July, 2020, 12:13 pm

Related News

  • New India-EU trade route: Bringing the Gulf states closer?
  • No 'sea of death': Pope calls for pan-European action on migration
  • Ukraine acts on 'compromise' plan after filing WTO trade complaint over food ban
  • EU chief pledges migrant action plan in Italy's Lampedusa
  • EU urges Poland, Hungary, Slovakia to be constructive on Ukraine grain

EU extends summit to Sunday after deadlock over Covid recovery plan

As the 27 leaders scurried back to their hotels after a late, inconclusive dinner, German Chancellor Angela Merkel and French President Emmanuel Macron stayed behind in the EU’s headquarters in Brussels to haggle with the Dutch-led camp of thrifty countries demanding cuts to the 1.8-trillion-euro package

Reuters
19 July, 2020, 08:20 am
Last modified: 19 July, 2020, 12:13 pm
European Council President Charles Michel, German Chancellor Angela Merkel, French President Emmanuel Macron and European Commission President Ursula von der Leyen meet on the sidelines of the first face-to-face EU summit since the coronavirus disease (COVID-19) outbreak, in Brussels, Belgium July 18, 2020. Francisco Seco/Pool via Reuters
European Council President Charles Michel, German Chancellor Angela Merkel, French President Emmanuel Macron and European Commission President Ursula von der Leyen meet on the sidelines of the first face-to-face EU summit since the coronavirus disease (COVID-19) outbreak, in Brussels, Belgium July 18, 2020. Francisco Seco/Pool via Reuters

European Union leaders failed to agree on a massive stimulus fund to revive their coronavirus-hammered economies on Saturday after two days of fraught negotiations, but extended their summit for another day to try and overcome their differences.

As the 27 leaders scurried back to their hotels after a late, inconclusive dinner, German Chancellor Angela Merkel and French President Emmanuel Macron stayed behind in the EU's headquarters in Brussels to haggle with the Dutch-led camp of thrifty countries demanding cuts to the 1.8-trillion-euro package.

"The negotiations were heated," said Prime Minister Giuseppe Conte of Italy, one of the EU countries most affected by the coronavirus crisis that are seeking generous aid from the bloc. "Europe is under the blackmail of the 'frugals'."

"We have to do all what is possible to reach a deal tomorrow. Further delays are not useful to anybody."

Summit chairman Charles Michel was due to hand new proposals before the 27 reconvene at noon (1000 GMT) on Sunday.

With the pandemic dealing Europe its worst economic shock since World War Two, leaders first locked horns on Friday over a proposed 750 billion euro ($856 billion) recovery fund and a 2021-27 EU budget of more than 1 trillion euros.

But a group of wealthy and fiscally "frugal" northern states — the Netherlands, Austria, Denmark and Sweden — blocked progress in the first face-to-face EU summit since spring lockdowns across the continent.

They favour repayable loans rather than free grants for the hard-hit indebted economies mostly on the Mediterranean rim, and they want stricter control over how the funds are spent.

Hopes for an agreement grew earlier on Saturday when Michel proposed revisions to the overall package designed to assuage the Dutch concerns.

Under his new plan, the portion of grants in the recovery fund would be reduced to 450 billion euros from 500 billion and an 'emergency brake' on disbursement would be added.

But hopes that this would be enough faded quickly as Sweden asked for grants to be cut to 155 billion euros, according to diplomatic sources. Some pointed out the recovery scheme would risk being irrelevant at that much-reduced scale.

Conte also said a de-facto veto on national applications for aid sought by The Hague was "politically and legally improper and also largely unfeasible".

"High Time"

The budget commissioner of the bloc's executive reminded the leaders - who wore masks and kept their distance from each other - that Covid-19 was still among them and they needed to act.

"Just a solemn reminder: the Corona crisis is not over: infections on the rise in many countries," Johannes Hahn tweeted. "High time to reach an agreement which allows us to provide the urgently needed support for our citizens+economies!"

Diplomats said the "frugals" also pressed through the day for bigger rebates for net payers into the core EU budget, among other demands.

Other countries had their own demands in negotiations criss-crossing different regional and economic priorities, putting in doubt an unprecedented act of solidarity for the EU under which the executive European Commission would borrow billions of euros on capital markets on behalf of them all.

The exact size of the EU's long-term budget and how far to use payouts as leverage for reforms, or whether to withhold money from countries that fail to live up to democratic standards, were unresolved as the leaders left on Saturday.

Hungary, backed by its eurosceptic, nationalist ally Poland, has threatened to veto the whole package over a new envisaged mechanism to freeze out countries flouting democracy.

The EU is already grappling with the protracted saga of Britain's exit from the bloc and has been bruised by past crises, from the financial meltdown of 2008 to feuds over migration.

Another economic shock could expose it to more eurosceptic, nationalist and protectionist forces, and weaken its standing against China, the United States or Russia. ($1 = 0.87 euros)

Top News / World+Biz

Europe / Coronavirus

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Harsher bilateral loans set to make external debt repayment tougher
    Harsher bilateral loans set to make external debt repayment tougher
  • BCL activist killed, 20 injured in AL-BNP clash in Chattogram
    BCL activist killed, 20 injured in AL-BNP clash in Chattogram
  • Photo: AFP
    Shakib-less Tigers make light work of Sri Lanka with big win in 1st World Cup warm up

MOST VIEWED

  • Photo: Collected
    Forex reserves fall to $21.15 billion
  • BRACU, DU, JU, NSU lead Bangladeshi universities in World Rankings 2024
    BRACU, DU, JU, NSU lead Bangladeshi universities in World Rankings 2024
  • Photo: BCB
    Shakib says he hasn't spoken with Litton since he broke his bat
  • File photo of Rooppur Nuclear Power Plant/UNB
    First batch of uranium reaches Rooppur
  • Photo: ICC
    BCB President should give less interviews: Shakib
  • Photo: RNPP project authorities.
    First shipment of nuclear fuel for Rooppur plant arrives in Dhaka 

Related News

  • New India-EU trade route: Bringing the Gulf states closer?
  • No 'sea of death': Pope calls for pan-European action on migration
  • Ukraine acts on 'compromise' plan after filing WTO trade complaint over food ban
  • EU chief pledges migrant action plan in Italy's Lampedusa
  • EU urges Poland, Hungary, Slovakia to be constructive on Ukraine grain

Features

Oh Oh Jaane Jaana: Enduring charisma of a quintessential 90s Bollywood song

Oh Oh Jaane Jaana: Enduring charisma of a quintessential 90s Bollywood song

13h | Features
Food delivery rider pedals through Dhaka's wet roads, ensuring timely deliveries despite the pouring rain. Photo: Syed Zakir Hossain/TBS

An unexpected rain, an unexpected expense: How food delivery men survive Dhaka’s storms

15h | Features
More than 86 lakh Bangladeshis went abroad as migrant workers in the last 14 years, according to BMET (Bureau of Manpower, Employment and Training). Naturally, these workers return to Bangladesh at some point to settle down. Photo: Syed Zakir Hossain

Why migrant workers have a hard time back at home

2d | Panorama
What impact will a forward forex rate have?

What impact will a forward forex rate have?

2d | Panorama

More Videos from TBS

Unarmed Armenians do not want to return to Nagorno-Karabakh

Unarmed Armenians do not want to return to Nagorno-Karabakh

2d | TBS World
Is injury the main reason Tamim is excluded from WC Squad?

Is injury the main reason Tamim is excluded from WC Squad?

2d | TBS SPORTS
Tourism master plan aims to attract 5.57m tourists annually by 2041

Tourism master plan aims to attract 5.57m tourists annually by 2041

1d | TBS Today
Economic zones to come under eco-friendly performance rating

Economic zones to come under eco-friendly performance rating

8h | TBS Economy
EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]