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As leaders prepare for another round of talks, President Gitanas Nausėda said Monday that he hoped “this day will bring a breakthrough” in reaching consensus.
“Fourth day in the circle of the European Council: Lithuania defends solidarity and unity to reach an agreement (…). I hope this day brings a breakthrough in the EVS marathon,” wrote G. Nausėda on Twitter.
In the past three days and nights, executives have been unable to find a common position on the $ 750 billion. A € 1 million recovery package for both coronavir-affected countries and soft loans.
The European Commission intends to borrow funds for the fund in international markets, but the group, which has called itself “austerity” countries with the Netherlands and Austria at the forefront, demands strict conditions for the co-loan. of money to the countries of southern Europe.
In an attempt to reach a compromise, the President of the European Council, Charles Michel, proposed an increase of € 500 billion on Monday morning. up to 390 billion The BNS reported that diplomatic sources had to reduce the share of the subsidies in the fund, which should not be returned to the states.
The controversy in the negotiations is also the desire of Western Europeans to link the allocation of funds to the country’s compliance with the rule of law. The Hungarian and Polish governments are opposed to this, which are in conflict with Brussels.
Once the grant component has been agreed, an updated draft with country-specific costs must be submitted to the Heads of State.
“There is a spirit of compromise. There have been some very tense moments, and some of the next moments will definitely be difficult again,” said French President Emmanuel Macron.
However, he soon added: “Nothing has been agreed so far, so I will continue to be extremely careful.”
German Chancellor Angela Merkel said the new proposal was “the basis for a possible agreement.”
Budgetary negotiations between EU leaders
“This is a step forward that gives hope that an agreement can be reached today, or at least that an agreement is possible,” said the foreign minister.
The Lithuanian delegation looks forward to returning to Vilnius as soon as possible on Tuesday. G. Nausėda’s planned visit to Birštonas on Tuesday has already been removed from the country’s leader’s official agenda.
“The dynamic is that we are working to the end, as in a conclave, until the white smoke appears,” a diplomat who followed the course of the talks told reporters on Monday afternoon, on condition of anonymity.
Lithuanian goals
Unofficial estimates showed that according to Saturday’s proposals, non-reimbursable aid to Lithuania could amount to around € 1.5 billion, plus Lithuania could apply for about € 2 billion in additional loans.
If the fund is cut, Lithuania’s share will likely decrease.
According to diplomatic sources, in a heated leaders’ discussion on Sunday night, G. Nausėda, like most other leaders, spoke for $ 400 billion. thoroughly, but tends to agree with ch. At Michel’s suggestion.
However, Lithuanians still expect additional discounts in the separate EU budget of more than a trillion euros by 2021-2027.
Before the decisive round of negotiations, Lithuanian President G. Nausėda assigned funds to agriculture as a priority for the Baltic states to bring direct payments to farmers closer to the EU average.
“The position of the Baltic states is that we are ready for commitments, but those commitments cannot be made at any cost without red lines,” the president said on Sunday afternoon.
“There are funds that we will not agree to reduce, and for that reason, even if that happens, we will have counter proposals, which are mainly related to greater support for agriculture,” said G. Nausėda.
On Saturday, the updated draft of the EU budget proposed an additional 125 million LTL for Lithuania. EUR, but the Lithuanian delegation promises to go further.
Farmers in the Baltic countries currently receive the lowest direct payments in the EU, at around € 170 per hectare, compared to the EU average of more than € 250.
According to the European Commission proposals presented this year, direct payments by Lithuanian farmers would gradually increase from 2022 to 2027. EU average.
At the start of the negotiations, G. Nausėda stated that he would try to increase profits to € 196 next year.
Budgetary negotiations between EU leaders
The target of 196 euros was set in the budget agreed seven years ago. Brussels officials say the amount was committed, but this number has not been reached due to a sharp increase in arable land.
Jonas Talmantas, president of the Lithuanian Farmers Union, estimates that Lithuanian farmers would receive 10% of direct payments annually. more if the arable land does not become vacant land.
“We cut and cut abandoned bushes and peat bogs. By increasing the areas, we dilute those benefits and stand still,” he told BNS on Monday.
On Saturday, additional compensation was provided for a total of nine European Union countries, including Latvia and Estonia, according to a document received by BNS.
The differences in direct payments in Europe are partly due to the fact that several factors lead to significant differences in the cost of agricultural production, from natural factors to labor costs.
Payments to Baltic farmers are well below the EU average.
Money for the Königsberg transit
In addition to agriculture, another important line for Lithuania was modified in the updated draft of the EU budget on Saturday – Cap. Michel agreed from 139 to 189 million. to increase funding for the so-called Special Transit Scheme, which is used by Russian citizens traveling through Lithuania between the main part of Russia and the Königsberg region.
No changes are planned for other important issues for Lithuania: the so-called cohesion support and the financing of the closure of the Ignalina nuclear power plant.
So-called cohesion support for Lithuania in 2021–2027 may decrease by as much as 24%, as indicators of the Lithuanian economy have come close to the community average.
This decrease can be slightly reduced by compensating for the losses caused by emigration: for Lithuania it would reach around 180 million. euros
In the new financial perspective, it is proposed to allocate LTL 490 million for the decommissioning of the Ignalina nuclear power plant. euros
Still, diplomats point out that all the numbers so far are more reminiscent of the divisions of an unshaven moose.
“But until everything is agreed, nothing is agreed,” said the senior diplomat.
This is the first summit since the pandemic. Journalists have not yet had the opportunity to ask questions directly of the President, security is not allowed in the EU Council building and the number of members of delegations has been reduced.
It is not allowed to publish, quote or reproduce the information of the BNS news agency in the media and on the Internet without the written consent of UAB “BNS”.
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