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EU Agrees On Coronavirus Fund After Disputes

By Stefan J. Bos, Special Correspondent Worthy News

(Worthy News) – Leaders of the European Union have agreed on an unprecedented 1.82 trillion euro ($2.1 trillion) budget and coronavirus recovery fund after tense negotiations that included table banging and meeting walkouts.

To confront the most significant recession in its history, the EU reached a consensus on a 750 billion euro coronavirus fund to be sent as loans and grants to the countries hit hardest by the virus. That comes on top of the roughly seven-year 1 trillion euro EU budget.

At first, the coronavirus grants were to total 500 billion euros, but the figure was lowered to 390 billion euros. The self-proclaimed frugal four – Sweden, Denmark, Austria, and the Netherlands – along with Finland, had opposed allowing 500 billion euro in the form of grants to countries hardest-hit by Covid-19.

The group, led by Dutch Prime Minister Mark Rutte, initially set 375 billion as the limit and conditions such as the right to block requests.

But pandemic-suffering EU member states such as Spain and Italy declined to go below 400 billion euros.

Amid the standoff, French President Emmanuel Macron reportedly banged his fists on the table, as he told the “frugal four” they were putting the European project “in danger.”

MORE YELLING

Macron yelled at Chancellor Sebastian Kurz of Austria for impeding the deal, and for leaving the room to take a call, according to people familiar with the talks.

Chancellor Angela Merkel of Germany also backed the coronavirus deal. Commentators noted that the EU countries would raise large sums by selling bonds collectively, not individually. And despite the “frugal four” opposition, much of the money will go as grants, not loans, to hardest-hit member nations.

It came as somewhat of a political setback for Dutch Prime Minister Mark Rutte, who already faces political pressure at home over previous rescue deals with Greece.

The package will now face more technical negotiations by member states and need ratification by the European Parliament. However, the summit chairman Charles Michel already called it a “pivotal moment for Europe” and its weary and bleary leaders.

The talks, which began in Brussels early Friday, saw more than 90 hours of tense negotiations. It became the EU’s longest since a 2000 meeting in the French city of Nice, which lasted for five days.

BUDGET TENSION

Tensions also emerged over the separate seven-year trillion euro budget. Rutte and others wanted to link subsidies to respect for rule-of-law in countries such as Poland and Hungary.

That prompted Hungarian Prime Minister to publicly wonder whether Rutte hated him or Hungary. “I don’t know what is the personal reason for the Dutch prime minister to hate me or Hungary. But he is attacking so harshly. And making very clear that because Hungary, in his opinion, does not respect the rule of law, [it] must be punished financially,” Orbán complained.

He stressed that Rutte’s position “is not acceptable because there is no decision about what is the rule of law situation in Hungary.” Both Hungary and Poland, who receive billions in EU aid, have come under pressure from

Brussels over limitations on the independence of the judiciary, media and other institutions.

But in a letter obtained by Worthy News, Hungary’s parliament speaker László Kövér urged his Dutch counterpart Khadija Arib for her cooperation in overcoming tensions.

He noted that the “The mandate given to our governments by the Hungarian and Dutch parliaments is incompatible.”

HOPE REMAINS

However Kövér expressed hope that there would be “a dialogue between our parliaments”. He stressed that a “planned trip of the Dutch representatives to Hungary and the rescheduling of my postponed visit to The Hague due to the coronavirus pandemic may offer an excellent opportunity for this” [dialogue].”

Sources close to the EU talks said the Hungarian-Dutch quarrels and other disagreements were later settled suggesting that the massive EU budget will be approved by all member states.

Hungary’s pro-government media reported that the country would receive some additional three billion euros in loans to tackle the coronavirus pandemic, though Hungary has far less registered

infections than most Western European nations.

Government media also claimed that German Chancellor Merkel seeks to end the EU’s Article 7 procedures against Hungary by the end of the year.

The procedure, which could include losing EU voting rights, was launched concerns over Hungary’s rule-of-law situation.