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This EVS can go down in history as the longest negotiation among EU leaders. It is true that 20 years ago, the meeting of EU leaders took 5 days. The current EVS meets from Friday.
Sunday’s talks lasted until dawn Monday, and no agreement was reached on key issues. Leaders have had no disagreement since Friday about the size of the Recovery Fund and the relationship between loans and grants, the administration of this fund (either to allocate money when supported by all parties without exception, or if a qualified majority is enough); establishing the principle of the rule of law and reimbursement of so-called overpayments.
On Saturday, ch. Michel’s proposal gave some hope of agreement, but in the end, the so-called resistance of the so-called “savers” (Austria, the Netherlands, Denmark, Sweden and, conditionally, Finland) faded. As a result, EU leaders received a renewed negotiating offer on Monday.
As proposed on Saturday, 50 million remain. Kaliningrad’s transit offer for Lithuania was improved (€ 139 million, now € 189 million). The proposed provision in February that Lithuania, like other countries affected by emigration, will receive remaining additional money. In the case of Lithuania, this is approximately 180 million. euros The same amount remains for Ignalina – 490 million. it did not fully satisfy Lithuania.
Unlike Saturday’s proposal, Lithuania no longer receives additional funds for rural development (as do Latvia and Estonia). Previously, Lithuania had 125 million. Euros Now, instead of Lithuania and Latvia or Estonia, Finland, Germany, Greece, Spain, Italy and Malta have appeared on this list of additional funds for rural development.
However, in the last chap. Michel’s proposal also states that from 2022 the gap between direct EU payments between countries will be closed. In addition, from the same year, the minimum payment per hectare will be € 200 and all countries will have until 2027. It will reach 215 euros per hectare. It is the last provision that appeared in the latest version of the proposal.
Comparison of direct EU payments to farmers was one of the main requirements of Lithuania. Currently, Lithuanians receive 176 euros per hectare, and the EU average payment is 266 euros, although this gap has been promised to be closed for a long time and more than once.
However, the main focus of EVS was on the Recovery Fund element in the new proposal. If the original proposal planned to divide the Recovery Fund into $ 500 billion. € 250 billion in grants and € 250 billion in euros for loans. Now 390 billion are proposed. € 360 billion in grants and in the form of loans in euros. Without a doubt, this is a reverence for the “frugal”. The proposed MFP is also 1,074 billion euros. as in previous proposals.
For Lithuania, such a change will also have a proportional effect (possible subsidies will decrease, the possibility of borrowing will increase), but it is not a great tragedy. After all, it has been said before that the country may face a lack of capacity to absorb the funds from the Recovery Fund. The most important issue for Lithuania is the issue of the EU budget and there are certain lines.
If the EU leaders agree with the current cap. Michel’s proposal, then there will be a discussion on the “small problems” relevant to Lithuania, the most important of which is the decrease in cohesion funds compared to the previous MFF.
“The last steps are always the most difficult, but I am convinced that even if it is difficult … I believe that an agreement is possible,” said Ch. Michel before sending the negotiated offer to the member states.
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