EUCO: Michel scales down grants
In a search of compromise the president of the European Council Charles Michel came forward with the proposal to scales down the grants (subsidies) in recovery & resilience facility (RRF) fund €672.5bn, of which loans €360bn & grants €312.5bn, 70% of grants provided in 2021-2022, 30% in 2023. The proposal constitutes a significant change in comparasion to the original plan of €750bn, consisting from €500bn in grants and €250bn in loans, announced at the beginning of the Summit on July 17.
“Since our last summit in June, we have worked intensively with all of you and taken due note of your concerns. On that basis I have put forward a proposal to address the key difficulties and to build bridges between the different positions. Finding agreement will require hard work and political will on the part of all. Now is the time. A deal is essential. We will need to find workable solutions and come to an agreement, for the greater benefit of our citizens” Charles Michel wrote in this invitation letter to the leaders ahead.