World Brussels is struggling to find the distribution of the...

Brussels is struggling to find the distribution of the billion – policy

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At the EU summit, the States debate will turn out, how hard the conditions for the Corona-AIDS – and who pays in the end. An Overview of the main points of dispute.

It comes to 1.8 trillion Euro and solidarity and mutual trust. This Friday, the 27 heads of state will exchange and government of the EU aid for the first time on the Corona – pot, and the most recent draft of the Seven-year budget. In his letter of invitation to this video link to EU Council President Charles Michel lists the points in dispute, and admits that “to cope with a lot of distance” is. From his environment, it means that Michel wanted to use the conference to hold, where Unity prevails and which issues continue to be plenty of debates to be necessary. In July, there should be a proper summit in Brussels, coming to the politician. An Overview of the package and the controversial aspects of:

The Corona-Auxiliary Pot

Three weeks ago, Commission President Ursula von der Leyen presented their proposal for the Corona-aid package. Accordingly, the authority is to record for the first time in their history in Grand style debt 750 billion euros – and most of it as a non-repayable grant to States transfer. Particularly for countries such as Italy and Spain are hit by the pandemic, hard and already high debt. The pot is linked with the so-called multiannual financial framework, i.e. the EU budget for 2021 to 2027: The money should flow through the existing and new EU programmes; the debt-financed relief Fund would increase to the budget in the first few years.

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Von der Leyen, also a new design for the Seven-year budget submitted to it. The volume – without the money from the Corona-pot – should be 1.1 trillion euros. In February, a Budget failed summit meeting. Of the Leyens proposal is strongly oriented to the compromise, the President Michel then presented.

Size and proportion of loans

Among the biggest points of contention is the extent of the Hilfstopfs and the proportion to account for grants and loans to States. Especially Austria, the Netherlands, Denmark, Finland and Sweden, the 750 billion euros for the lush and also insist on as few grants. “In the case of loans, the incentives, the money well and wisely to spend to exist,” says a senior EU Diplomat from one of these countries. He also contradicts the impression that the States were isolated on this question. The advantage of loans is that the Commission keeps the money, the debt can pay to support them for the auxiliary pot. In the case of grants, this is not the case. Von der Leyen, 500 of the 750 billion euros would like to distribute as grants. For grants the necessary debt abgestottert in the future from the EU budget, Germany accounted for in purely mathematical terms, 130 billion Euro of the repayment.

Nevertheless, the Federal government advocates precisely such as France and the southern European countries for a high share of grants. The Argument: countries such as Italy already have more than enough debt; new loans to help them a little. The Federal government is important, however, that the Commission will start the repayment of the debt earlier and not until 2028, as von der Leyen has suggested. The delay was “a precept of sincerity,” – said in Berlin.

Distribution and conditions

The EU Commission wants to pay off the bulk of the subsidies through a new EU program to support public investment and reforms. Governments are supposed to submit plans with eligible projects, and the authority will then consider whether the projects will bring the country and the EU. Governments such as the Dutch call for tougher conditions and controls. The Italy rejects in turn. Rome would have a free Hand. Also controversial is the distribution key is how much money you can get every country to the maximum.

The Seven-Year Budget

The Seven-year budget, there is also discord. As with the UK, a major contributor is eliminated, there is a growing burden for the other net contributors, in other words countries such as Germany, which pay more to Brussels than from there flows back. According to calculations by the Federal government, the annual contribution of Germany in comparison to the present EU, could increase the budget by almost half, or 13 billion Euro. So far, Germany and four other net contributors by contribution discounts. The quintet is fighting to maintain them. Controversial is also the exact size of the budget, as well as the question of how much should be invested in traditional areas of spending such as farm subsidies and aid for disadvantaged regions, and how much in new topics such as cross – border and climate protection.

The Role Of Germany

If permitted by the pandemic, to be held in mid-July, a personal summit meeting in Brussels. Whether a breakthrough or additional conferences are necessary, is open. President Michel is the goal of a degree in the summer. However, different interpretations in member States, when the end of summer, says someone from Michels environment, half in jest. The governments agreed, is yet to agree to the European Parliament. Then the national parliaments would have to give their Placet to the fact that the Commission soon to be massive debt. In the Federal government, to create this ratification until the end of the year, was “sporty”. The government has an important role, because Germany takes over in July, the presidency of the EU. However, there is an effort in Berlin to talk down expectations: “it is Not the compromise,” says an Insider, “but Charles Michel.”

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