After days of negotiations and tensions, which ratified internal fractures within the European Union (EU), its 27 member states on Tuesday agreed on a 750 billion euros economic recovery plan.
Around 05:30 local time, the community organization reached a consensus to relaunch its economy after the devastating impact caused by the Covid-19 pandemic, responsible for an unprecedented recession.
The pact foresees 390 billion euros in grants and 360 billion loans, figures adjusted to the demands of Austria, Denmark, Finland, the Netherlands and Sweden, reluctant to support 400 billion and 500 billion of direct aid promoted by Germany, Spain, France and Italy, major EU powers and the hardest-hit countries by the pandemic.
About 92 hours of tortuous negotiations came to an end, the result of which was celebrated by German Chancellor Angela Merkel and French President Emmanuel Macron.
For European Commission President Ursula von der Leyen, this is a historic agreement, ‘from which we must all be proud’, while Charles Michel, President of the European Council, described it as strong and adequate.
The 750 billion euros recovery fund will be financed by the issuance of common debt and a 1,074 billion euros budget for the 2021-2027 period.