EU Council, first round: Countries maintain their positions, with an uncooperative Holland

"Nothing is unshakable in life, let's see tomorrow". So Giuseppe Conte to the reporters in front of the hotel just after midnight. The “Dutch vetoes” and the resistance led to the black smoke in the first day of work of the extraordinary European council which is entrusted with the difficult negotiations on the 'Next generation EU'.

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"We still have to work because there are still differences.  Are you satisfied with the proposals made today? "No, despite the generous commitment, we believe that it cannot be spent: it concerns more than anything else the governance, the implementation phase of the Recovery plans. There are also other aspects we are discussing".

"We have made an alternative Italian proposal", He explains, which provides"an involvement also of the board in the governance of the Recovery “but respectful of the prerogatives of the commission, which according to the community forecasts has the prerogative on the implementation of the budget”. “We cannot compromise on this: it is a function that the treaties attribute to the commission. Ours was a proposal that nevertheless allowed the council to draw greater attention from the committee. Nothing more".

"Italy is also very ambitious because it defends a proposal of the commission and the prerogative of the commission. We are available to enter into the logic of reviewing some details. We are absolutely not ready to accept a compromise solution that alters not only the balance between the European institutions (this is a red line for us) but also the ambition as regards the amount of the Recovery intervention ”equal to 750 billion euros and“ the balance, the internal balance between subsidies and loans ”.

“Germany played a great role - adds -: in the German internal debate there was much opposition to ”the Recovery fund. "Merkel's leadership played a great role in guiding this solution."

“Germany, with France, has also officially proposed the 500 billion as subsidies: Germany is playing a great role but there are still details on which to agree. Conte stops to talk to Merkel in the night, after meeting her at the hotel bar where they both stay in Brussels.

The draft presented by the President of the European Council Charles Michel provides for a seven-year budget worth € 1.074 billion, to which a Recovery Fund of € 750 billion is associated. Before the summit, Merkel spoke of a very difficult session but we can see the will that the negotiations have great vigor thanks to the will of France and the work done by President Michel.

As explained by Sole24Ore  four points were discussed. The process of approving the national plans and the consequent disbursement of the money contained in the Recovery Fund (governance); the volume of the EU budget as well as the discounts enjoyed by five countries (Germany, Austria, Sweden, Denmark and the Netherlands); the Fund's money allocation key; the link between European funds and respect for the rule of law in spending Community resources at national level.

Dutch Prime Minister Mark Rutte was immediately dissatisfied especially with the proposal put forward by President Michel to approve the disbursement of the money from the Recovery Fund. The Michel option provides for the approval of the national plan by a qualified majority by the Council and subsequently the approval of the disbursement by the European Commission, after consulting the governments. Marked by an intergovernmental vision, Holland would like to introduce the principle of unanimity, not accepted by Italy. Among the hypotheses is that of asking the leaders for the final approval of the disbursement in the event of differences between governments.

Sources close to Merkel report that governance, the amount of financial instruments and national discounts are non-negotiable topics. 

Today the second round of an extraordinary European Council that, as Conte said, has never been seen for at least 40 years.

EU Council, first round: Countries maintain their positions, with an uncooperative Holland