European Council President Charles Michel has called on all European Union (EU) member states to stay united on a comprehensive financial package to underpin the EU’s recovery from the COVID-19 pandemic.
Michel urged that its implementation should be as soon as possible noting that the vast majority of member states have agreed with the compromise on the table.
The president made the plea at a video conference of EU leaders on Thursday.
He also noted that some other members were not able to support the majority regarding the mechanism on the conditionality of the recovery package.
He said “This financial package is essential for our economic recovery.’’
Michel said that he hoped for a solution that would be accepted by all member states through further discussion.
In July, EU leaders agreed upon a comprehensive package totaling over 1.8 trillion euros (2.12 trillion United States dollars), which combined the long-term EU budget for 2021-2027, or the so-called Multiannual Financial Framework worth nearly 1.1 trillion euros.
The recovery fund, named Next Generation EU, would be financed with a borrowing of 750 billion euros.
The recovery package needs to be ratified by all member states before coming into effect.
However, Poland and Hungary vetoed the financial plan on Monday, delaying the massive fiscal stimulus, which plays a critical role for the EU in getting through the recession caused by the pandemic.
President of the European Central Bank Christine Lagarde told the European Parliament’s Committee on Economic and Monetary Affairs in a hearing that “the Next Generation EU package must become operational without delay.’’
Lagarde stressed that the package’s additional resources could facilitate expansionary fiscal policies, most notably in those countries with limited fiscal space.
She called for proper arrangements to allow for the well-sequenced and effective spending of these funds.