€1.82 trillion package deal reached at European Council

EU Heads of State or Government agreed on a Recovery Package and a new MFF 2021-2027 after five days of negotiations

On July 21, 2020 the European Council adopted conclusions on the EU’s recovery plan from the COVID-19 pandemic and a new Multiannual Financial Framework (MFF) for 2021-2027.

In its conclusions, the European Council stated that the new package is focused on the protection of citizens and overcoming the crisis Europe is facing.

The EU and its Member States have had to adopt emergency measures to preserve the health of the citizens and prevent a collapse of the economy. Thus, the Recovery Package – Next Generation EU (NGEU) and the new MFF are considered as short- and long-term plans for mitigating and rebuilding the EU from the socio-economic damage of the pandemic. “This requires an unprecedented effort and an innovative approach, fostering convergence, resilience and transformation in the EU.

We need the Recovery effort as a quick and effective answer to a temporary challenge, but this will only yield the desired result and be sustainable if it is linked to and in harmony with the traditional MFF that has shaped our budgetary policies since 1988 and offers a long-term perspective.

Click here for the Council Conclusions.

Remarks by President Charles Michel after the Special European Council, 17-21 July 2020 – click here.

On July 23, the European Parliament discussed the European Council’s budget deal and the following observations were made:

  • Deal is viewed as a positive step for the short-term recovery, however, cuts to the long-term budget (Multiannual Financial Framework) are unacceptable;
  • Binding commitment to new sources of EU revenue is indispensable; &
  • Members of the European Parliament are prepared to withhold consent for long-term budget unless said deal is improved.

Full European Parliament Press Release can be found here.

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