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The plan of the European Union, which was to breathe life into the economy, was thrown off balance as EU leaders failed to reach a consensus over several issues:
1. How to create a huge recovery fund?
2. What measures can be taken for countries which needed it the most?
The discussion lasted three days, and on the table is a package worth € 1.8 trillion for the EU long-term budget, which is equivalent to $ 2.06 trillion. The 750-billion fund for restoration will be collected on the capital markets by the EU Executive Commission, which will be sent mainly to the affected countries in the Mediterranean.
ECB President Christine Lagarde said that it is better that the EU leaders have given decisions honestly than to conclude a quick agreement at any costs.
"Ideally, the leaders' agreement should be honest in terms of the size and composition of the package even if it takes a little longer," said Lagarde.
Wealthy states in Northern Europe are pushing for lesser funds for recovery and tried to limit the distribution of disbursements between grants and repayable loans.
Thus, on Sunday evening, another attempt to reach a compromise failed. The deal, which would provide grants of € 400 billion instead of the proposed € 500 billion, was rejected by the Nordic countries as they are calling for a fund worth only € 350 billion.
Such disagreement deteriorates further the relations between the north and south of the EU.
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