At the negotiating table in Brussels: a futile proposal for Lithuania



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In an attempt to alleviate the stubbornness of the “austerity quartet” (Austria, the Netherlands, Denmark and Sweden) to reject the current proposal for the Multiannual Financial Perspective (MFP) (€ 1,074 billion) and the Recovery Fund (€ 750 billion), EVS President Charles Michel proposed a new Recovery Plan. The formula for allocating the resources of the Fund. It is said that it will better reflect the real economic situation of the countries and the impact of the coronary crisis.

According to the new formula, calculating 2023. will not take into account the unemployment rate, but only the country’s GDP. This means that funds for Lithuania are likely to decline as the country’s economy is projected to grow. According to politico.eu, accepting such a calculation would also affect other countries: Poland, Latvia. For these countries in 2023. The Recovery Fund subsidies would fall by more than 60%. compared to 2021-2022. As mentioned above, the current arrangements for allocating the Recovery Fund raise some questions, as Poland is expected to suffer less from the crown crisis (the economy will fall 4.6%), but is expected to receive one of the largest Recovery Fund amounts (63%). 8 billion euros).

It is difficult to say exactly how much money would be allocated to Lithuania because, according to diplomats, chap. Michel himself did not provide any figures. However, it is millions of euros.

The disputes are not just about this proposal. On Friday, the EVS ended unexpectedly “very early”, before midnight Brussels time, although such talks usually last until morning. According to diplomats, the stubbornness of Dutch Prime Minister Mark Rutte regarding procedures for approving the Recovery Fund funds for countries (seeking to establish that the funds would be allocated with the unanimous consent of all member states) has led to a Deadpoint. Not surprisingly, many EU leaders have been skeptical about the possibility of reaching an agreement this weekend.

“I am not so optimistic, but it will be a big step forward in any case,” Lithuanian President Gitanas Nausėda said Friday morning.

EU leaders in Brussels are trying to agree on a rough MFF and a Recovery Fund, that is. 1.8 billion. euros From the beginning, many countries have deferred on these issues. Lithuania was also not satisfied with the proposals.

EVS continues on Saturday.

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