"EU Recovery Fund Likely to Agree on 390 Billion Euro Subsidy"... Summit Resumes on the 20th

EU Summit Scheduled for Two Days Extends to Fourth Day... Attention on Whether 'Marathon' Discussions Will Reach a Conclusion

On the morning of the 20th (local time), Angela Merkel, Chancellor of Germany, is walking out of the building where the summit was held in Brussels, Belgium.
[Image source=AP Yonhap News]

On the morning of the 20th (local time), French President Emmanuel Macron is walking out of the building where the summit was held in Brussels, Belgium.
[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The deadlock in discussions over the European Union (EU) recovery fund appears to be nearing a breakthrough due to a shift in stance by the so-called 'Frugal Four' countries, including the Netherlands, Bloomberg reported on the 20th (local time). The summit, originally scheduled for two days, was extended to four days as marathon talks continued, drawing attention to whether both sides will reach an agreement.

Bloomberg cited two anonymous sources familiar with the confidential discussions, reporting that after talks on the recovery fund continued until the evening of the previous day, the Netherlands, Austria, Denmark, and Sweden agreed to a plan where €390 billion (approximately 537.9 trillion KRW) of the total fund would be allocated as grants, with the remainder provided as loans.

Sebastian Kurz, Chancellor of Austria, tweeted, "The difficult negotiations have just concluded," adding, "We can be very satisfied with today's outcome. It will continue this afternoon." A French government official also told Bloomberg that a full agreement is expected.

The 27 EU member state leaders plan to meet again at 4 p.m. to finalize the agreement. The EU leaders held their first in-person summit since the COVID-19 outbreak on the 17th and 18th, negotiating a €750 billion recovery fund and a €1.074 trillion EU long-term budget for 2021?2027. The meeting was originally scheduled for two days but was extended to the 19th due to unresolved differences, with discussions continuing until 6 a.m. on the 20th, according to foreign media.

The deadlock in negotiations stemmed from the method and scale of the recovery fund proposed by the European Commission. The Commission proposed creating a €750 billion recovery fund to support member states severely affected by COVID-19, suggesting that €500 billion be provided as grants and the remainder as loans.

However, the Netherlands, Austria, Sweden, and Denmark stated they could only accept up to €350 billion and insisted on strengthening the responsibilities of recipient countries, requiring conditions such as budget and labor market reforms when funds are received. As discussions stalled, Charles Michel, President of the European Council, also proposed a plan to set the grant amount at €400 billion.

This content was produced with the assistance of AI translation services.