"This is historic. We renewed our marriage vows for 30 years. Europe is there, strong, standing tall" . Report by President Charles Michel at the European Parliament on the Special European Council of 17-21 July 2020 - Hoofdinhoud
Four days and four nights. These were complex negotiations on very complex issues.
We agreed on the Recovery Package and the European budget. This moment, it is my conviction, is pivotal in European history. We acted fast and with urgency. In less than two months, we hammered out a deal of more than 1.8 trillion euros. And this response is massive. Compared to the size of its economy, Europe's response is greater than that of the United States or China.
In fact, this agreement is a “first” in many ways: this is the first time in European history that we agree to borrow collectively to finance expenditure. It is also the first time that our budgetary funds are connected to our climate ambition and it is the first time our budget will be directly linked to the rule of law. I am convinced that Europe is a force for action.
Today I stand before you with that agreement in hand, endorsed by unanimity, by all 27 leaders. Everyone had to give something in order to get something. It is a strong and ambitious deal for Europe and for Europeans. It's fair, balanced and groundbreaking. Why? Because it will boost our three common goals: convergence, resilience and transformation.
The Recovery Fund (Next Generation EU) is a one-off measure to address the impact of COVID-19.
I would like to stress that the total size of the Recovery Fund is 750 billion euros:
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-390 billion in grants
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-360 billion in loans
These funds will be targeted at the hardest hit regions and sectors. It targets 30% of the MFF and the Recovery Fund to fighting climate change. And we will make sure the Recovery Fund money is well spent, by anchoring it in solid governance.
On the budget, we have decided to propose 1 074 billion euros. Commitment, mobilisation, the will to succeed with this money in pursuing efforts to reduce the disparities within Europe, achieve greater convergence and begin the transformation which is so necessary and so urgent.
I know that, on the MFF, some people are pointing to the cuts compared with the Commission proposal. For my part, to bring some nuance back into the debate, I would invite you to look at the starting point. The starting point is the money that is currently spent each year on each of the policies implemented by the European Union. Looking at the MFF and the Recovery Fund together and comparing them with the current situation, we can see that in each case additional funding will be mobilised in the various areas such as digital, Horizon Europe and Erasmus. And we also propose to establish a special Brexit reserve, because we are mindful that in any scenario, with or without a deal, we will need to support the countries and sectors most directly affected by the economic consequences of Brexit.
I know that there is one issue which has received a lot of attention here, as it did during the summit: the question of rebates or corrections. It is true that these rebates have been maintained for one country and increased for four other countries. And it is true that this was part of the overall agreement, because we were dealing with an exceptional situation: the need to mobilise resources within the framework of the Recovery Fund. And so the agreement gave rise to that part of the decision, which I would also like to highlight.
I would now like to turn to the issue of own resources. We have had many debates, both formal and informal, with this house on this central issue, because we consider that own resources can be a turning point in terms of the way Europe sees its future. And this is why, I think it’s fair to say, we have delivered perhaps even more than what could have been imagined just a few weeks ago, by clearly setting out some political roadmaps. And above all, I would like to emphasise, by adding an extra element with respect to the Commission’s original proposal: the idea that we will begin repayment under the coming MFF, and not the following one. Politically, this is an extremely powerful tool that fosters resolve.
It commits us, I hope it will commit the Parliament, it will also commit the heads of state or government. And I think that, whether it’s on the carbon border measures, on digital, on financial transactions, on the ETS or on the issue of plastic waste, there is substance for democratic political debate, in the finest sense, within the framework of European democracy, but also, I am quite certain, in the national parliaments. And that’s a good thing. Because at the heart of that debate are central questions that will be raised as to the direction we want the European Union to take.
The role of the European Parliament is of course a key issue. I am aware that it will certainly be debated here, beyond what is already provided for in the institutional framework and the Parliament’s role in the legislative process, as regards its role in the centrepiece which is the RRF (Recovery and Resilience Fund) and other measures on the expenditure side. Because what we have proposed - in paragraph 11 of our conclusions - is for the Council and the European Parliament to share political control in the annual process of control over expenditure. I do not doubt that we will have further discussions on this subject.
Finally, I want to highlight a point that is close to my heart - and that should be close to all of our hearts. For five years now, I have had the responsibility of being part of the European Council: first as the Belgian Prime Minister, and now as President of the European Council. This weekend, for the first time in five years, we had a very long discussion around the table, with the 27 heads of state or government speaking face to face, about the rule of law and fundamental values. And the discussion we had must not be the end of the matter. Rather, it must be a milestone, a major milestone - and a helpful one. So I am pleased to say that what you have before you now makes the connection and introduces conditionality between financial matters and the issue of governance and the rule of law. And everyone must play their part. The Commission, of course, within the institutional framework. The European Parliament. And the European Council, too, with its responsibility for leading the debate on the political direction, will also need to revisit the subject regularly. And I will make quite sure that this central, vital issue, which is fundamental to the EU’s agenda, remains at the heart of the democratic debate.
Let me conclude. A few days ago, global deaths linked to COVID-19 passed the 600 000 mark. COVID-19 has shaken us and shaken up the way our democratic societies function - something that was quite unthinkable only a few months earlier. We have had to come to terms with this, impose drastic limits on personal freedoms - fundamental freedoms - and put our healthcare systems to a gruelling test. I am utterly convinced that the world after COVID-19 will have to be a different place. It will have to be more committed, stronger, and more deeply rooted in the need for humanity that unites us all.
The deal I put before you today, as I see it, is of course a deal which covers financial matters; but it is also much more than that. It is more because it has started a discussion that puts the meaning and the direction that we want to give the European project in the years ahead firmly on the agenda. So I truly think this is a historic moment, and - you may detect a hint of romanticism here - I believe that by taking this extraordinary decision, the decision to put a strong plan for own resources into action, the decision to borrow together for the sake of investment and reform, what we have done is to renew our European marriage vows for the next 30 years. European unity has won through, and more than ever I think that the message we are sending to European citizens is one of confidence, of solidity, of strength. The message we are sending to the rest of the world is: Europe is here. Europe is strong. Europe is standing tall. Thank you.
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