EU leaders were deadlocked over the bloc’s next multiannual budget after lengthy summit talks on Thursday night laid bare rifts over how to fill the €60bn to €75bn funding gap created by Brexit.
Charles Michel, the European Council president, spent much of the night locked in one-to-one talks with leaders as he attempted to end an impasse over the 2021-27 spending plans. However, a rebellion by Germany and other northern European countries over plans to slash rebates they receive on their EU budget contributions overshadowed the discussions, the FT reports.
Politico reports that Charles Michel has been struggling to make headway with the leaders of Austria, Denmark, Sweden and the Netherlands, who are pushing for a budget of 1 percent of EU27 Gross National Income and permanent reductions to what they contribute to the bloc’s coffers.
Talks overnight “quite quickly escalated into frugal blockage,” said one EU diplomat.
Their resistance has meant that despite earlier expectations, Michel did not circulate a revised budget compromise proposal this morning. The frugal four prime ministers will meet again this morning to coordinate, a second diplomat confirmed.
All leaders are being asked to give ground in the negotiations: net payers into the budget are being asked to assume a bigger burden, while net recipients face tighter spending programmes. The European Commission has warned that further delay in reaching a deal risks hampering the rollout of core EU programmes.
Chancellor Angela Merkel told her fellow leaders that Germany would insist on its rebate for the full seven-year period of the upcoming multiannual financial framework, or MFF — and that the sum should not decline in value. That message was echoed by leaders of other net contributors, including the Dutch prime minister Mark Rutte, in a roundtable discussion.
Danish PM Mette Frederiksen said she doesn’t think EU leaders will reach a final budget deal during this meeting.
“I’m prepared to stay the whole weekend, but no, I don’t think we are going to reach an agreement” on the whole package, she said, adding that leaders would “probably” need another meeting in March.
Asked whether the “frugal four” — Austria, Denmark, Sweden and the Netherlands — are blocking a new compromise proposal by Council President Charles Michel, she replied: “I think the frugal four [are] quite clear in how we see the discussion about the budget, and we have said that yesterday both to all our colleagues and also to Michel. I don’t think anyone is interested in having a discussion about blocking today. We’re still negotiating.”
POLITICO reports that last night’s roundtable brought “little stimulus,” an EU diplomat said.
That said, the Commission’s proposal might be a middle ground, according to the diplomat, who said that “a majority could live with the Commission proposal,” including the cohesion countries, which have “already conceded that the Commission proposal could be a possible middle ground for them.”
Yet Michel is sticking with his 1.07 percent proposal so far and Austria, Denmark, Sweden and the Netherlands — who want a more limited budget — are “extremely well coordinated,” the diplomat said.
But the frugal countries are not the only headache for Michel. According to the diplomat, many participants are concerned about a potential Parliament veto.
“Either Michel is a magician or we will have to confirm that we are not much closer to progress,” the diplomat said.
epa08230207 European Council President Charles Michel arrives to give a statement prior a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/JULIEN WARNAND
epa08230635 European Commission President Ursula von der Leyen arrives for a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/IAN LANGSDON
epa08231112 European Commission President Ursula von der Leyen (R) speaks with (L-R) Austrian Chancellor Sebastian Kurz, Dutch Prime Minister Mark Rutte and Swedish Prime Minister Stefan Lofven, during a meeting on the sidelines of a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/VIRGINIA MAYO / POOL
epa08231140 Prime Minister of Hungary Viktor Orban arrives for a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/JULIEN WARNAND / POOL
epa08231150 (L-R) European Commission President Ursula von der Leyen, Denmark Prime Minister Mette Fredriksen, and at EU Council President Charles Michel at a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/OLIVIER HOSLET
epa08231217 Italian Premier Antonio Conte (L) and Austrian Chancellor Sebastian Kurz (R) at a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/OLIVIER HOSLET
epa08231242 Dutch Prime Minister Mark Rutte (L) and German Chancellor Angela Merkel (R) at a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/OLIVIER HOSLET
epa08231309 (L-R) European Parliament President David Sassoli, European Commission President Ursula von der Leyen, and Portugal Prime Minister Antonio Costa at a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/OLIVIER HOSLET
epa08231344 European Commission President Ursula von der Leyen gestures as she arrives for a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/Riccardo Pareggiani / POOL
epa08231346 A general view over a Round Table during a Special European Council meeting in Brussels, Belgium, 20 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/Riccardo Pareggiani / POOL
epa08233485 France’s President Emmanuel Macron arrives for the second day of a Special European Council summit in Brussels, Belgium, 21 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/LUDOVIC MARIN / POOL
epa08233493 Germany’s Chancellor Angela Merkel arrives for the second day of a Special European Council summit in Brussels, Belgium, 21 February 2020. EU heads of state or government gather for a special meeting to discuss the EU?s long-term budget for 2021-2027. EPA-EFE/LUDOVIC MARIN / POOL
