EU recovery summit could end with no deal, says Merkel

BRUSSELS (AFP) – Germany’s Chancellor Angela Merkel warned that European Union (EU) leaders may fail to reach an agreement on a huge post-virus recovery plan for the shattered European economy.

Arriving for the third and what she said was probably the “decisive” day of an extraordinary European summit yesterday, Merkel said the 27 leaders had “many positions” on the size of the fund, on rules for accessing it and on tying it to respect for the rule of law.

“I still can’t say whether a solution will be found,” she said. “There is a lot of good will… but it may also be that no result will be achieved today.”

Merkel was due to join French President Emmanuel Macron and the President of the European Council, summit host Charles Michel, to prepare a new offer to break the logjam after Dutch Prime Minister Mark Rutte and his ‘Frugal Five’ allies blocked a deal.

Michel had proposed a EUR750 billion package of EU loans and grants to help member states recover from an historic coronavirus recession.