The head of the European Council, Charles Michel, on Friday updated the proposal to EU member States on the Union’s multi-year financial plan for 2021-2027, as well as the Fund for the recovery of the Euro economy after the coronavirus-related crisis.

“During the discussions between the heads of state and government, it became clear that there are serious objections to this package. After that, I held a series of bilateral talks with European leaders, following which I will present a revised draft of the multi-year budget plan, and the recovery Fund,” the head of the European Council said at a press conference in Brussels. According to him, the plan is based on Europe’s priorities: climate, digitalization, European values, and strengthening the EU’s position in the world. “We need to deal with the consequences of the pandemic, reform our economy and equip our society,” he added.

Michel clarified that the new proposal involves fixing the volume of the multi-year financial plan for 1.704 trillion euros, as well as preserving the 750 billion euros previously proposed by the European Commission for the economic recovery Fund. “The Commission will be able to borrow 750 billion. This is an emergency tool that is needed in an emergency,” Michel explained. He also suggested maintaining a balance between loans, subsidies, and guarantees to avoid overloading member States with too much debt. “This is important for our single market, preventing its fragmentation,” the head of the European Council said.

Michel also noted that 70% of the Fund’s funds would be used in 2021-2022 based on EC criteria. Another 30% could be used in 2023, depending on economic indicators. In any case, all the Fund’s funds must be disbursed by 2026.

According to him, the future of Europe and its place in the world in the future depends on the negotiations of European leaders on July 17-18. “Where do we want to see Europe on the world map in the next ten or fifteen years? There are serious ambitions that can be fulfilled if we show unity in achieving our common goals. I look at things with optimism, but I realize that these are susceptible issues,” the head of the European Council said.