European Council President Charles Michel on Friday updated his proposal to the bloc's member states on the Multiannual Financial Framework (MFF) and the recovery instrument, Next Generation EU, the EU Council head announced in a press release
MOSCOW (Pakistan Point News / Sputnik - 10th July, 2020) European Council President Charles Michel on Friday updated his proposal to the bloc's member states on the Multiannual Financial Framework (MFF) and the recovery instrument, Next Generation EU, the EU Council head announced in a press release.
"On June 19th, leaders had a first discussion on this proposal. These discussions revealed strong opposition to the package. As a result, I immediately began negotiations and bilateral meetings with all the leaders. And based on these discussions, today I propose my revised proposal for the European multiannual budget and the Recovery Plan. It is firmly grounded in our EU priorities - climate transformation, digital agenda, European values and a stronger Europe in the world. The goals of our recovery can be summarised in 3 words: first convergence, second resilience and transformation," the press release said.
Michel clarified that the new proposal sets the European Union's budget amounts for 2021-2027 at 1.074 trillion Euros ($1.2 trillion), as well as keeps in full the 750 billion euros previously proposed by the European Commission for the recovery fund. At the same time, he proposed "to preserve the balance between loans, guarantees and grants to avoid over-burdening member states with high levels of debt" that will prevent single market fragmentation.
The EU Council chief also proposed that 70 percent of the fund is used from 2021-2022 in accordance with the EU Commission's allocation criteria, while 30 percent could be used in 2023, and "the total envelope should be disbursed by 2026."
From July 17-18, 27 EU leaders will gather in Brussels for their first in-person summit to discuss the ambitious coronavirus recovery fund, which was proposed by France and Germany in May, as well as the next long-term budget for 2021-2027. According to Michel, Europe's future highly depends on the outcomes of the EU leaders summit.