It had been known that the frugal four as they are named, Austria, Netherlands, Denmark and Sweden were opposed to giving grants that don’t have to be repaid instead of loans to countries whose economies have been most damaged by COVID-19. Finland has also joined this group over the weekend and they have succeeded in frustrating closure on the €750bn recovery package. The Council President, Charles Michel has tabled a revision moving more money from the grants section into the loans section which appears to be meeting with the approval of the frugal four ahead of what is hoped to be the concluding session today.
Agriculture council
Meanwhile recently appointed agriculture Minister, Dara Calleary is facing his first council meeting at a critical time in the CAP negotiation and farm to fork strategy. The ministers might have hoped that their leaders would have had the budget finalised though there is an expectation that it won’t be far from the most recent Commission proposal.
Worryingly reports were emerging over the weekend that €5bn was being cut from the rural development budget in and attempt to trim the budget to appease the frugal group of countries. Tim Cullinan, IFA President warned the Taoiseach over the weekend that he cannot return with anything less in the CAP than the €391.5bn proposed by the Commission.
The agenda for the agriculture ministers is dominated by the CAP and farm to fork strategy and while neither will be finalised today, it is an important milestone in the process as the German Presidency has the ambition of bringing these to a conclusion before the Presidency moves on at the end of the year.
CAP cuts back on the table at European Council meeting