Germany’s Merkel Warns of Summit Failure on EU Recovery Fund

German Chancellor Angela Merkel warned that EU leaders may not be able to reach an agreement on a stimulus plan to combat Covid-19 on Sunday as negotiations between leaders continue for a third day and tensions over the demands of rich countries escalate.

“There is a lot of goodwill, but also in many positions. I will make every effort but, it is possible that there is no result,” Merkel said in Brussels as she arrived for the third day of talks on Sunday.

Speaking on arrival at the Europa building, she said Sunday would be the “decisive” day for talks. European leaders on Saturday decided to extend the summit in an effort to reach a deal on a proposed €1.82T EU budget and recovery package.

“We are going into the third day of negotiations today and it is certainly the decisive one,” Merkel said. “At this point, we’ve properly worked through various issues including the size of the fund, how it is managed and also issues regarding the rule of law. I still can’t tell if there will be a solution.”

“There’s lots of goodwill, but there are also many positions. That’s why I will be among those pushing for an agreement, but it is also possible that there will be no result today,” the German chancellor said.