EU leaders reach a breakthrough on the region’s 750 billion euro recovery fund

The 27 European Union governments have reached a breakthrough agreement over the region’s 750 billion euro pandemic recovery fund, following marathon talks in Brussels. European Council President Charles Michel said he believes this deal will be seen as a “pivotal moment” for Europe.

“We did it! Europe is strong. Europe is united,” he said in an early Tuesday press conference announcing the agreement. “These were, of course, difficult negotiations in very difficult times for all Europeans.” Michel said the agreement “is a good deal, this is a strong deal and, most importantly, this is the right deal for Europe right now.”

The heads of state have been locked in talks since Friday morning to discuss the proposed fund and the EU’s next budget. However, deep differences on how to divide the amount between grants and loans, how to oversee its investment and how to link it with the EU’s democratic values prolonged the talks into one of the longest EU summits in history.

In terms of other measures, the EU has already approved a 540 billion euro package of short-term fiscal stimulus to address the ongoing economic shock.

EU leaders reach a breakthrough on the region’s 750 billion euro recovery fund, CNBC, Jul 21