The leaders of 27 European Union (EU) member countries agreed on a 750 billion euro recovery program and a future budget of over 1 trillion euros to combat the economic consequences of the new type of coronavirus (Covid-19).
European Council President Charles Michel and EU Commission President Ursula von der Leyen held a press conference at the end of the EU Leaders Summit held in Brussels.
Michel said, “We succeeded. We reached an agreement on the rescue package and budget. The next 7-year budget will be 1 trillion 74 billion euros. 750 billion euros will be allocated to the rescue package.” said.
Stating that difficult negotiations have been held since Friday, Michel said, “We negotiated more than money here. The agreement is one of the important moments that will carry Europe into the future.” he said.
Michel pointed out that for the first time in European history, the budget was clearly linked to climate targets, the rule of law was a determining criterion, and steps were taken regarding own resources.
EU Commission President Von der Leyen also pointed out that they agreed on the budget and recovery program and said, “This is an unprecedented package totaling 1.8 trillion euros, compatible with European priorities.” he said.
Recalling that the negotiations lasted 4 days and 4 nights, Von der Leyen said, “We are at a historical moment for Europe. 27 member countries showed solidarity and accepted the package.” made his assessment.
Von der Leyen explained that after this stage, they will start negotiations with the European Parliament (EP) regarding the rescue package and budget.
According to the agreed package, the EU Commission will receive the authority to borrow from capital markets. Under this mandate and the EU budget guarantee, the Commission will provide a total of 750 billion euros to the recovery programme. Of this, 390 billion euros will be grants and 360 billion euros will be loans.
The total size of the EU’s 2021-2027 budget will reach 1 trillion 74 billion euros. Member countries will contribute 1.4 percent of their national income to the budget.
About the summit
The summit, chaired by EU Council President Michel, was attended by the heads of state or government of the 27 member countries and EU Commission President Von der Leyen.
At the summit, the economic recovery program against the economic effects of the epidemic and the draft “Multiannual Financial Framework” that will determine the EU’s budget for 2021-2027 were discussed.
Leaders discussed the size of the recovery program, the amount of grants and loans within it, and the monitoring mechanism and conditions to be implemented for them.
The leaders, who also negotiated the EU’s budget for the 2021-2027 period, determined the size of the budget, areas of spending and to what extent member countries would contribute to the future budget.
The decision regarding the EU budget and recovery program is taken with the approval of the European Parliament (EP).
