European Union members presented a new compromise proposal for an $ 860 billion radical economic recovery fund as they entered the second day of talks in Brussels with deep disagreements over key aspects of the plan.
The size of the fund will remain unchanged but will reduce the amount allocated in the form of grants by € 50 billion. Under the new plan, € 450 billion will be allocated in grants and € 300 billion in loans to allay the concerns of fiscal states such as the Netherlands. This happened after negotiations that turned into a heated debate, abandoning the bloc’s plan to help its economies recover from the coronavirus. At stake is not only the number of funds to be made available to countries but the ability of the EU as a whole to offer significant solidarity to its 27 members and push through unprecedented financial integration. Also, the Prime Minister of the Netherlands Mark Rutte insisted that he would not allow financial support to the southern members most affected by the virus without an ironclad guarantee that the money would go as intended to projects that would improve the economies of the countries and help businesses, as reported Bloomberg.