SUNDAY, 5 APR 2020

 

CONNECT

Facebook Linked In Twitter
Compliance_29/01-24/09_728x90px
GloriaJeans_266x90px
IMH LTD

Zeta Emilianidou Outlines Measures To Support Employment, Workers And Vulnerable Groups

Cyprus Government: €700 Mn To Counteract Coronavirus Repercussions

IMH LTD
GAP_Group_2019_468x60px

INTERNATIONAL

brought to you by CIPA

EU Deadlocked In Budget Summit As Rifts Laid Bare

EU Deadlocked In Budget Summit As Rifts Laid Bare

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, the Financial Times reported.

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. 

 

Britain’s departure has left the EU struggling to finance ambitious policies to fight climate change, aid poorer regions and subsidise farmers without placing heavier burdens on richer northern European countries that have baulked at proposals tabled by Michel so far. 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.  Emmanuel Macron, the French president, emphasised that the bloc must not allow itself to be derailed by Brexit. “We have to take account of the British departure,” he told reporters. “But it would be unacceptable to have a Europe that compensates for Britain leaving by scaling back its means.”

Summit talks will continue in Brussels on Friday as Michel seeks a breakthrough.

 

A key barrier to progress in the night’s discussions were proposals from Brussels to phase out the rebates granted to Germany, the Netherlands, Denmark, Sweden and Austria — all of which are among the largest net payers into the budget.  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.

On the eve of the summit Michel proposed lower rebates for the key recipients but they rebuffed his overture. Other leaders led by Macron insisted the payments needed to be ditched entirely. The five countries’ rebates were in current prices worth €6.4bn in 2020, according to European Commission figures — with Germany the biggest recipient at €3.76bn.

Hans Dahlgren, Sweden’s EU affairs minister, told the Financial Times his country had joined with three other countries benefiting from rebates to discuss the budget with Michel. “The only thing I can say is that there is no new proposal on the table,” he said.

 

Merkel told reporters that leaders from the 27 member states faced a complex task and that they would have to overcome big differences. “Germany is not satisfied with the current status of negotiations, because we think we don’t yet have an adequate balance among the net contributors to the budget,” she said. Going into the summit Michel was proposing a €1.09tn budget for the period from 2021 to 2027. That would be worth 1.074 per cent of the region’s gross national income, but this is higher than the 1 per cent that frugal states have insisted they are willing to pay. Among Michel’s pre-summit proposals was a plan to boost the capital of the European Investment Bank, the EU’s Luxembourg-based multilateral lender, in order to mobilise an extra €500bn of investment firepower. This idea was shot down by Merkel during discussions with fellow leaders, as she reiterated her country’s longstanding concerns that the institution is not adequately supervised. 

Michel also suggested adding €6bn to cohesion spending, the part of the budget that goes to boosting regional economies, compared with proposals from the Finnish EU presidency late last year. Cohesion would also be adjusted to divert some funding from better-off areas and make it easier to shift money between different spending pots.  His overtures received a mixed response from eastern European countries while frustrating some richer countries, which accused him of offering too many concessions. 

 

Mateusz Morawiecki, Poland’s prime minister, described the discussions as “the most difficult negotiations in history” for the EU budget. “They’re difficult because some of the countries push for new goals, they want to have a new structure of this budget. We don’t agree to have a revolution of the structure of the budget and to decrease it,” Morawiecki said.

Xavier Bettel, Luxembourg’s prime minister, said member states were giving themselves an impossible task in the discussions given the EU’s swelling list of priorities and reduced budgetary firepower. “The proposal is we want to do more with less. I don’t know if Charles Michel is the twin brother of David Copperfield,” he said, in a reference to the magician.

MORE ON INTERNATIONAL

India-EU Trade In Goods: €1.4 Billion Deficit In 2019

India was the EU's 10th largest partner for imports (2% of total extra-EU imports) ...

COVID-19: A Breakdown Of The Respiratory Disease Caused By The New Coronavirus

COVID-19, the respiratory disease caused by the new coronavirus, has spread to every ...

Most Europeans Would Support Permanent Ban On Short-Distance Flights, EU Survey Reveals

A Europe-wide poll on attitudes to flying and climate change has revealed a large ...

FROM AROUND GOLDNEWS

   

Gold News Update

Due to the measures being taken by IMH to contain COVID-19, we shall not be updating this website or sending out our daily newsletter until further notice. ...
   

A New Global Methodology To Define Cities And Rural Areas

Have you ever asked yourself how Sustainable Development Goal indicators on sustainable cities and communities can be compared if countries across the world ...
   

Supporting Businesses Working Remotely with “Cisco Webex Meetings & Messaging for Enterprise”

Today, due to global circumstances resulting from COVID-19 (Coronavirus disease), the need for remote working has significantly increased. Amidst this new ...
   

Cyprus Government: €700 Mn To Counteract Coronavirus Repercussions

Cyprus announced a financial support package of € 700m, equivalent to 3% of the GDP which includes a series of measures, covering health, finance and ...
   

Cyprus Airways Suspends Its Flights’ Schedule Until 30 April

  Further to the additional measures announced yesterday by the Cypriot government to prevent spreading the coronavirus (COVID-19) in the country, ...
   

Zeta Emilianidou Outlines Measures To Support Employment, Workers And Vulnerable Groups

Measures to support employment, workers and vulnerable groups of the population  from the effects of the coronavirus protection measures, which are ...
   

High Potential Startups And Economic Resilience

Economic growth without innovation is hard to imagine. The ultimate source of productivity increases is innovation. About two-thirds of Europe's economic ...
   

3CX To Offer Free Communications Solution To Businesses In Wake Of Covid-19

3CX, developer of the award-winning business communications solution, has today announced that they will be offering their software to organizations in Cyprus ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Limassol_Business_Summit_10/03-23/06_300x250px
Gold_Issue_300x250px

IMH LTD