BRUSSELS (BELGIUM) – European Union leaders may not agree upon a deal on a coronavirus stimulus plan on Sunday, German Chancellor Angela Merkel said. Negotiations continued for the third day.
Germany and France, the EU’s powerbrokers, are seeking a deal on a 1.8 trillion euro ($2.06 trillion) economic recovery package to salvage the bloc’s economies worst hit by recession since World War Two.
After two exhausting days of negotiations, richer states led by the Netherlands appeared to be hesitant to withdraw from demands for cuts to the package, highlighting the depth of the EU’s north-south split.
Merkel said in Brussels as she arrived for a third day of talks, “There is a lot of goodwill, but also many positions. I will make every effort but it is possible that there is no result.”
Late on Saturday, she and French President Emmanuel Macron left the day’s final stretch of informal talks early, refusing to accept that the level of free grants to ailing economies in the package fall below 400 billion euros.
Italian Prime Minister Giuseppe Conte had earlier accused the Netherlands and its allies Austria, Sweden, Denmark and Finland of “blackmail”. Stockholm aims to reduce grants to 155 billion euros.
ANNOYED DEPARTURES
French President Macron said there was a willingness to compromise, but it should not deter “from the legitimate ambition that we need to have,” referring to the planned 750 billion euro recovery fund, which is to be funded by money raised on capital markets.
With Britain’s departure from the EU, it means others have to invest more cash to cover the disparity in the bloc’s joint coffers.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field.