Outlook for the European Council video-conference of 19 June 2020

12-06-2020

The European Council meeting on 19 June, to be held by video-conference, will be almost exclusively dedicated to the next Multiannual Financial Framework (MFF) and the proposed new EU recovery fund, dubbed ‘Next Generation EU’. The two European Commission proposals are now to be considered as one package for the purpose of negotiation, since the recovery fund is in effect embedded within the revamped EU long-term budget. This has increased the pressure on Member States to reach a political agreement on the MFF, but also multiplied the issues of disagreement among the EU leaders. In addition to the MFF-specific issues, on which divergences could not be overcome at the special European Council meeting in February 2020 – namely the overall size of the EU budget, the use of rebates and the funding allocation per policy area – the proposal for the recovery fund raises sensitive new questions, notably on the balance between loans and grants, the allocation criteria for funding and the modalities for repayment.

The European Council meeting on 19 June, to be held by video-conference, will be almost exclusively dedicated to the next Multiannual Financial Framework (MFF) and the proposed new EU recovery fund, dubbed ‘Next Generation EU’. The two European Commission proposals are now to be considered as one package for the purpose of negotiation, since the recovery fund is in effect embedded within the revamped EU long-term budget. This has increased the pressure on Member States to reach a political agreement on the MFF, but also multiplied the issues of disagreement among the EU leaders. In addition to the MFF-specific issues, on which divergences could not be overcome at the special European Council meeting in February 2020 – namely the overall size of the EU budget, the use of rebates and the funding allocation per policy area – the proposal for the recovery fund raises sensitive new questions, notably on the balance between loans and grants, the allocation criteria for funding and the modalities for repayment.