Michel presents compromise plan for EU budget and recovery fund

European Council president sets out proposal ahead of summit.

European Council President Charles Michel on Friday presented a compromise proposal aimed at reaching agreement among EU leaders on a coronavirus recovery fund and the bloc’s long-term budget.

Michel stuck to the European Commission’s proposal of a €750 billion recovery fund, consisting of €500 billion in grants and €250 billion in loans, to address the impact of the coronavirus crisis.

The Council chief also suggested a core seven-year budget of €1.074 trillion, a volume lower than both the Commission’s May proposal and Michel’s own February blueprint.

Leaders are set to discuss Michel’s new proposal at a summit starting July 17, but some officials have suggested a second gathering might be needed in order to reach consensus.