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“Okay!” Wrote Charles Michel, President of the European Council, on Twitter.
The decision to provide assistance to the countries affected by coronavir of a total of 750 billion euros was approved in Brussels. Lending in euros is a historic step towards deeper fiscal integration in the EU.
EU leaders also approved an EU budget of more than € 1 trillion for 2021-2027.
According to diplomats, considering both measures, the total European support for Lithuania in the new financial perspectives will be 1.7 billion. EUR higher than in the 2014-2020 budget.
Payments to farmers
At the end of the negotiating marathon, the Baltic states managed to obtain higher direct payments to farmers in the EU budget. Payments to Lithuanian farmers will increase from the current € 177 per hectare to € 200 in 2022.
Lithuanian President Gitanas Nausėda noted that increased support for agriculture is the Baltic States’ most important achievement, which will help to ensure a level playing field in Europe.
“We have a great offer for farmers,” the president said in a comment to the media.
“Direct payments can be seen in one way or another, but they are part of the common agricultural policy and, as an economist, I attach great importance to a level playing field,” he said.
“If farmers in some countries have the opportunity to receive, for example, direct payments of over one hundred euros per hectare than Lithuanian farmers, then in my opinion there are unequal conditions of competition and this must be combated,” added G. Nausėda.
The other most important line for Lithuania, the support of cohesion funds, did not change in the last stage of the negotiations.
The cohesion support allocated to Lithuania to reduce the backwardness of the poorest regions may decrease by up to 24% in 2021-2027, as the indicators of the Lithuanian economy have come close to the EU average.
This decrease can be slightly reduced by compensating for the losses caused by emigration: for Lithuania it would reach around 180 million. euros
Nausėda promised at the start of the summit to seek an increase in that amount, but on Tuesday he said he was satisfied with the outcome of the talks that compensation had been maintained.
The new financial perspective foresees LTL 490 million for the closure of the Ignalina nuclear power plant. euros
Funding for the Special Transit Scheme used by Russian citizens traveling through Lithuania between the main part of Russia and the Königsberg region should amount to LTL 189 million. This amount increased by 50 million euros at the summit. euros
The new economic recovery fund is expected to provide € 390 billion in grants to Member States. Euros Of this, Lithuania should need about 2,400 million. euros, says the presidency. The other part will be provided to the states in the form of loans: Lithuania could borrow 2.2 billion from the fund. euros
Coronavirus crisis
Lithuania’s priorities in the EU budget negotiations have remained the same for many years, but the coronavirus crisis has fundamentally changed the situation.
At the beginning of the year, Lithuanians turned to the negotiations, sounding alarm bells about the impact on the country’s economy, which would be caused by a drastic decrease in European support.
After the decision to establish an economic recovery fund, G. Nausėda proceeded to negotiations that started on Friday, almost certain that total support for Lithuania will increase, not decrease.
According to the Presidency report, total EU support in the new financial perspectives will be € 1.7 billion. The total amount of EU funds allocated to Lithuania will reach € 14.5 billion. euros For every euro paid, 4 euros of EU aid will return Lithuania to the EU budget.
The meeting in Brussels has been delayed by a call by the group of “savers” countries led by the Dutch and Austrians to cut the grant fund and establish strict conditions for the distribution of borrowed funds in the markets of southern European countries.
Western Europeans’ desire to link the allocation of funds to the country’s compliance with the rule of law was also the subject of heated debate in the negotiations. This was opposed by the Hungarian and Polish governments, which were in conflict with Brussels.
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