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President Gitan Nausėdas, who returned from Brussels in a Spartan military plane after 4 days of negotiations, is greeted by an oak leaf wreath at Vilnius airport. For the highest payments agreed for Lithuanian farmers by the Minister of Agriculture Palionis, the crown is presented to the President not by the farmers, but by Vice Minister Gustas.
“For the excellent results of the negotiations. The oak is a symbol of victory, let me give you a crown. Thank you,” says Deputy Minister of Agriculture Evaldas Gustas.
The president does not put gifts around his neck, he gives them to the assistants. However, the highest payments agreed for farmers are presented as a great achievement.
“A special change is observed in the field of agriculture, it can wait up to 5 billion euros”, says G. Nausėda.
At that time, farmers’ representatives are not optimistic, because in the next 7 years payments will not even come close to the European Union average.
“How long will the EU keep 90% of Lithuanian citizens. Citizens? No one agrees with that, but for the second seven-year period, the upper limit of 90% was set for Lithuanian farmers,” he says. Eimantas Pranauskas, representative of the Association of Agricultural Companies.
The leaders of the European Union, who met in Brussels day and night starting on Friday, parted ways by agreeing on a 7-year common budget for the European Union. The parties shared almost € 2 trillion in two tranches: a long-term budget of more than € 1 trillion and an additional stimulus fund of € 750 billion. Lithuania will have a very small part of this money, less than one percent, less than € 15 billion.
However, President Nausėda is satisfied with the result and announces a green economy and digitization as a priority.
“Lithuania will have excellent opportunities to finance its green economy and digitization projects, which will be a priority of our activities for 7 years. Compared to the previous financial perspective, the size of the funds will be 1.7 billion euros. Higher euros “said G. Nausėda.
As Lithuania becomes economically stronger, the Cohesion Funds will already decrease by around € 2 billion. Furthermore, in Vilnius County, which is considered the richest, European co-financing will no longer be 70%, but only 40%. Despite the decrease in Cohesion Funds, European support to Lithuania for the next 7 years will be 1.5 billion more than now, and the increase will be determined by a special fund for the recovery from the coronavir crisis.
“The funds of the Recovery Fund will not fall from the sky. They will have to be returned in solidarity. The standard support is designed so that we get 4 euros, we pay 1 euro. The ratio of the funds of the Recovery Fund is only 2 to 1. That proportion is not so high that we can divide the money from left to right, “says economist Žygimantas Mauricas.
The decision by Western Europeans, also supported by Lithuania, to increase the allocation of funds with the parties’ observance of the rule of law raised strong disputes in the negotiations. The Hungarian and Polish governments, accused of democratic restrictions, were the main opponents.
“This is the amount of money demanded by the austerity states, looking selfishly and closely only at their own interests,” says Polish Prime Minister Mateusz Morawiecki.
Under the compromise reached, the Commission will provide € 750 billion for post-coronavir recovery, of which almost half will be € 390 billion in grants and € 360 billion in soft loans.
“It just came to our attention then. This is a strong agreement. And most importantly, it is the right solution for Europe at the moment. I thank all the leaders, the President of the Commission and the teams for their hard work. We have demonstrated collective responsibility, solidarity and a strong belief in our common future, “said Charles Michel, President of the European Council.
The meeting in Brussels was prolonged due to demand from the so-called “thrifty” group of the Netherlands, Austria, Denmark, Finland and Sweden to cut the coronavir virus support fund and impose stringent conditions for funds loaned in common markets do not go to waste in the countries of southern Europe.
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