This archive report was first published on 19 July 2020.
On a decisive day in Brussels, European Union leaders gathered for an extraordinary summit to discuss a massive post-virus recovery plan for the shattered European economy.
Germany's Chancellor Angela Merkel warned that EU leaders may fail to reach an agreement on Sunday, citing the complexity of the negotiations.
According to Merkel, the 27 leaders had 'many positions' on the size of the fund, rules for accessing it, and tying it to respect for the rule of law.
Despite the challenges, Merkel expressed her optimism, stating, 'There is a lot of good will… but it may also be that no result will be achieved today.'
French President Emmanuel Macron and European Council President Charles Michel were set to join Merkel in preparing a new offer to break the logjam, following the blockage by Dutch Prime Minister Mark Rutte and his 'Frugal Five' allies.
The proposed 750-billion-euro package of EU loans and grants aimed to help member states recover from the historic coronavirus recession, but Austria saw the package as too big, and the Netherlands wanted member states to be able to veto national spending plans.
The EU leaders were due to meet again in the full summit format from noon, with talks potentially extending late into the night.
