The President of the European Council, Charles Michel, told members of the European Parliament about the progress in negotiations on the multi-year financial plan for 2021-2027 and the Fund for the recovery of the European economy after the crisis COVID-19, noting that differences remain.

“The States agreed to discuss together a multi-year financial plan and a recovery Fund. Everyone agrees that there should be an unprecedented response to an unprecedented crisis. Everyone also agrees that we should focus on the regions and sectors of the economy that have been most affected by the pandemic,” Michel said.

At the same time, according to him, serious disagreements remain. “There are still differences in the size of the Fund. The issue of the balance of subsidies and loans also remains problematic for some countries, ” the head of the European Council stressed.

He explained that several countries also did not see a direct link between the current Fund proposal and the COVID-19 pandemic and its real consequences. “They believe that the proposals are based on outdated data that does not take into account the consequences of the pandemic, in particular on the issue of unemployment… There is also no agreement on the issue of linking the recovery Fund with the ongoing reforms, the state of law,” said Michel.

The President of the European Council said that he held the first round of bilateral talks with the leaders of European countries on the recovery Fund and financial plan. “They were complex, but always constructive‚Ķ We will never reach an agreement if everyone does not agree to take a step forward,” said Michel.

Earlier, German Chancellor Angela Merkel, speaking in the European Parliament, admitted that when discussing the plan to restore the Euro economy, “everyone must compromise.”
The extraordinary summit in Brussels will be held on July 17-18 and will focus on the EU recovery Fund and the multi-year financial plan for 2021-2027. These issues have already been discussed at the level of EU leaders, but no final agreement has yet been reached on them.