EU Leaders Nearing Agreement on Recovery Fund

Leaders of the European Union (EU) are set to reach an agreement about the COVID-19 recovery fund, which will help member countries cope with the coronavirus pandemic economic impacts.

President of the EU Council, Charles Michel, was cited by Reuters earlier today as saying that he is confident of the bloc reaching a deal on the EUR 750 billion fund.

This comes after several days of discussion and disagreements, especially about economic reforms, debts and grants.

Talks went into its fourth day on Monday were reportedly fierce.

The recovery fund is expected to include EUR 390 billion in grants and EUR 360 billion in loans.

Last week, President of the European Central Bank (ECB), Christine Lagarde, said she is expecting the EU to prefer grants over loans as a funding mechanism for it’s the economic stimulus fund.

Originally, it was proposed by the European Commission that the fund would be divided into EUR 500 billion grants and EUR 250 billion in loans.

In a bid to speed up its goals in combating climate change, the EU will obligate member countries to submit their plans to become carbon-neutral by 2050 before receiving the funds.

There were many doubts prior to the summit about whether the 27 members of the EU could reach an agreement on the fund.

German Chancellor Angela Merkel expressed doubts regarding whether members of the European Union will reach an agreement on the coronavirus recovery fund or not.

Earlier today, The Prime Minister of Spain, Pedro Sanchez expressed hopes that an agreement comes in place.