Economics
EU Leaders Deadlocked Over Recovery Fund as Talks Continue
- Leaders divided over how to structure 750 billion-euro package
- Italy’s Conte accuses fiscal hawks of blackmailing Europe
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European Union efforts to agree on a 750 billion-euro ($856 billion) stimulus package ran into trouble late Sunday as leaders were unable to reconcile differences over how much of the recovery fund should be distributed through grants versus low-interest loans.
European Council President Charles Michel floated a new proposal that would reduce the size of handouts to 400 billion euros, down from an original 500 billion euros, according to officials familiar with the discussions. Dutch Prime Minister Mark Rutte and his Austrian counterpart Sebastian Kurz rejected the new offer, and stood by a pledge to limit grants to 350 billion euros.