Published On: Tue, Jul 21st, 2020

EU coronavirus: Three ‘big sacrifices’ Brussels had to make to secure rescue package | World | News

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In order to agree to the crucial rescue package to save European member states, three major concession were made. Evaluating the details of the new deal, economic analyst site Eurointelligence has revealed Brussels has effectively abolished the rule of law within the bloc, annihilated future development programmes and increased rebate payments to certain countries. They said: “The real story of EU’s deal is not the €390bn (£352billion) in grants, but the price the EU had to pay to get there.

“The EU made three big sacrifices.

“The rule of law linkage to the budget is now effectively gone.

“The system of unfair rebates is not only maintained but enlarged: like Margaret Thatcher before, the frugal’s got their money back.

“Most important for us is the annihilation of the funds earmarked for various categories of investment, notably the climate change transition which is down from €30bn (£27billion) to €10bn (£9billion), and a 50 percent cut in the funds earmarked for research.

“Several other categories of investments were also culled.”

EU leaders also agreed an accompanying €1.074trillion (£900billion) Multiannual Financial Framework for the bloc’s budget.

During negotiations, Poland and Hungary both managed to disentangle the new rescue package from rule of law proceedings, concerning the two states.

Rule of law proceedings within Article 7 of the Treaty of the European Union states members must adhere to the bloc’s ethics and values.

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Rebates constitute a payment to the country from the bloc depending on its contribution to the budget.

The Netherlands rebate increased to €1.92billion (£1.7billion) from €1.57billion (£1.4billion) while Austria’s doubled to €565million (£511million).

Overall the deal centres on a €390bn (£353billion) package of grants to member states hit hardest by the pandemic.

Italy and Spain both received the largest amount due to the impact the virus had on the two countries.

The second half of the package will be a €360billion (£326billion) in low-interest loans.

Commenting on the package, EU Commission President, Ursula von der Leyen said: “Today we’ve taken a historic step, we all can be proud of.

“But other important steps remain.

“First and most important: to gain the support of the European Parliament.
“Nobody should take our European Union for granted.”

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