EU budgetCouncil President Charles Michel holding one-to-one talks to solve budget issue

Pierre Jans
Day two of discussions unfolds after EU heads of state struggled to conclude budget talks in Brussels on Thursday.
PM Xavier Bettel with President Macron and Chancellor Merkel at the canteen.
PM Xavier Bettel with President Macron and Chancellor Merkel at the canteen.
© Elodie Lamer

Prime Minister Xavier Bettel confessed on Thursday that he had packed a spare shirt, anticipating the extension of the budget talks. As it turned out, this was a savvy move, as talks continued well into Friday.

By Friday lunchtime, the EU leaders were still struggling to reach a compromise. The budget in discussion will be valid for the next seven years, with the talks expected to be difficult before they began. Bettel was in good spirits on Thursday, but less so by 4.30am on Friday - he described himself as optimistic but explained that opinions were differing between the leaders and an agreement seemed far away.

New Council President Charles Michel invited delegates for one-to-one talks on Thursday evening, lasting throughout the night. Bettel’s appointment took place at 4am on Friday morning.

On Friday afternoon, as Michel attempted to pull together information from the individual meetings, it began to seem likely that a second summit would be required to find a compromise for all EU members. Some countries, including Germany, France, and the so-called “frugal four”, have protested at the inequality between their high contributions and low rebates. Others, particularly Eastern European countries, contribute less but require more support. Luxembourg and other countries are pushing for a more equal resolution.

The 27 states must now find a compromise on the overall level of the budget (2021-2027), as well as its distribution between the different EU policies, while taking into account the gap left by the departure of the British contributors.

Brexit has complicated the deal for this negotiation, which takes place every 7 years. The 2021-2027 budget will have to do without an amount estimated between 60 and 75 billion euros over seven years.

Charles Michel’s compromise proposal represents 1.074% of the EU’s gross income, equating to around 1,094 billion euros. The European Parliament suggested 1.3%, while the EU Commission suggested 1.1%. Germany, France and their allies have demanded the budget be capped at 1%.

If Friday’s discussions do not end in an agreement, it is likely a second summit will take place in early March to decide the budget.

De Pierre Jans vu Bréissel (21.2.2020 - 12h30)

Other subjects in focus

Another topic raised at the Brussels summit was the situation in Syria. The EU leaders released a joint statement condemning the latest attacks by the Syrian regime and its allies in the Idlib region, and called for a ceasefire in order to respect international humanitarian rights. The statement also said the situation in Syria would be brought before the International Criminal Court.

Fir Däitschland ze vill, fir Lëtzebuerg ze wéineg: EU-Budgetsplang gesäit 1000 Milliarden Euro vir
Budget-Sommet zu Bréissel: Generalprouf fir Charles Michel, Bettel rechent mat schwierege Verhandlungen

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