Daily Memo: The EU Deadlock Breaks

EU members finally reached a deal on a coronavirus recovery plan and long-term budget.

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The deadlock breaks. After three days of intense negotiations – which comprised the second-longest summit in European Council history – the European Union finally reached a deal on Tuesday on a coronavirus recovery plan. The stalemate between the EU’s northern and southern member states over the size and scope of the “Next Generation EU” package finally broke with an agreement on a 1 trillion-euro long-term budget and 750 billion-euro recovery plan. But while the EU celebrates reaching consensus after months of talks, many hard-hit southern economies say the deal still doesn’t go far enough and are already lobbying for another wave of financial assistance in the future. The recovery plan includes 360 billion euros in loans and 390 billion euros in grants – which is a slight victory for the northern “frugal four” countries considering the initial proposal had offered 500 billion euros in grants. The frugals, which called the deal “historic,” were also given larger rebates on their EU contributions than was originally anticipated. Dam trouble in China? Chinese authorities are warning that the mighty Yangtze River is cresting again, risking a major increase in flooding that has already displaced millions of people and killed at least 15. The […]

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