Brussels: First 'live' EU summit since the start of the pandemic

(Patria) – European leaders will meet on Friday in Brussels for the first 'live' summit since the start of the pandemic, to reach an agreement on an economic recovery package.

Although the 27 leaders agree that joint action is necessary, they do not agree on how to distribute financial support.

The European Commission has proposed a recovery fund of 750 billion euros, and has supported the joint proposal of France and Germany to distribute the larger part of the amount, around 500 billion euros, in the form of grants to member states most affected by the pandemic. The EU budget of one trillion euros, known as the Multiannual Financial Framework, is also in question.  

This plan would be financed through joint debt for the first time in EU history.

However, the plan proposal has divided the bloc: Southern countries like Italy and Spain support the plan, while the '4 thrifty' as Austria, Denmark, Sweden and the Netherlands are called, oppose the plan because they believe that funds should not be given as grants, and they dispute the concept of joint debt due to less solvent members.

The recovery package can only be realized with unanimous support, so several rounds of negotiations have already been held ahead of Friday's summit.

Angela Merkel, who celebrates her 66th birthday on Friday, met with Italian Prime Minister Giuseppe Conte and Spanish Prime Minister Pedro Sanchez earlier this week.

Merkel, who took over the bloc's six-month presidency earlier this month, stated before the EU parliament that Germany is 'ready to show extreme solidarity'.

At the same time, French President Emmanuel Macron met with Conte as well as Portuguese leader Antonio Costa, and earlier this month with Dutch Prime Minister Mark Rutte.

Upon arriving at the summit, Macron commented to the media that Friday's meeting is a 'moment of truth for Europe's ambition', and that the health, economic and social crisis in the bloc requires 'much more solidarity and ambition'.

EU leaders are also expected to find a joint solution for the EU budget for the next seven-year period, which European Council President Charles Michel believes should reach 1.1 trillion euros.

Michel is expected to lead the negotiations this weekend, while many doubt that an agreement can be reached in such a short time. 

- I know it will be difficult, but it's not just about money, it's about the European future and our unity, Michel commented upon arriving at the summit. 'Although it will be difficult, I am convinced that with political courage it will be possible to reach an agreement,' Euronews reports.