EU leaders unchain €1.8 trillion budget after compromise with Poland & Hungary

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EU leaders unchain €1.8 trillion budget after compromise with Poland & Hungary

On Thursday, the Chairman of EU leaders, Charles Michel, said that the leaders of 27-member bloc had reached an accord to rollout a jawdropping €1.8 trillion in fiscal packages aimed at insulating their economies further from an ongoing recession and a rapid acceleration in economic recoveries after a pandemic-induced fiscal slump earlier this year, pointing towards a breakthrough move at a critical time what analysts were contemplating as a twilight zone for a number of pandemic-battered eurozone economies.

Apart fr€om that, the summit leader Charles Michel had also added that Warsaw and Budapest had initially vetoed the budget, but come to senses after reaching a compromise deal. If truth is to be told, Hungary and Poland were unlikely to be benefitted from the €1.8 trillion budget, since both of the countries have been under an EU investigation over independence of their media and judiciary system that could escalate the risks of losing billions of euros from the European Union Commission.

Nonetheless, Germany, which have been holding the rotating presidency of the eurozone, had managed to cut a deal with the beleaguered nations which in effect had prompted a withdrawal of their vetoes. Meanwhile, addressing the two-day long garrulous debate with Hungary and Poland, German Chancellor Angela Merkel said following the announcement, “Germany has worked hard to bridge the differences and find solutions for the concerns of Poland and Hungary while at the same time upholding the rule of law mechanism as agreed with the European Parliament”.

Digitalization and climate changes to dictate EU’s economic recovery

Aside from that, adding that the €1.8 trillion EU budget would involve about €1.1 trillion in an MFF (Multiannual Financial Framework) initiative alongside a historic €750 billion in pandemic relief bills, the Summit Chair Charles Michel tweeted late in the day, “Deal on the MFF and Recovery Package.

Now we can start with the implementation and build back our economies. Our landmark recovery package will drive forward our green & digital transitions”. In tandem, over the two-day long talks, the EU leaders had discussed about an even distribution of pandemic vaccines alongside a planned resettlement of trade relationship with the United States, while the summit also focuses on a likely sanction on Turkey over its drilling activities in the disputed east-Mediterranean maritime borders between Cyprus and Greece.