EU Leaders fail to agree on EU economic recovery package

During a virtual summit EU Leaders have failed to agree on a recovery package of €750 billion to help the economic revival of Europe impacted by the pandemic.

German Chancellor Angela Merkel said the bridges that have to be built for EU unity are great. However, she acknowledged the discussions had been constructive.

Sweden, Denmark, Austria and Holland are opposing an EU plan that €500 billion be distributed in grants. They are insisting these should be in the form of loans. Italy and Spain would be the most to benefit from a grants package.

“It was the occasion to observe that on different points there is an emerging consensus, which is very positive, but at the same time, we don’t underestimate the difficulties,” said EU Council President Charles Michel.

Discussions will continue in mid-July when EU Leaders are expected to meet face-to-face in Brussels.