EU Clears Hurdle to Unlock 1.8 Trillion-Euro Budget Package

  • EU negotiators, parliament agree on size of long-term budget
  • Deal paves way for recovery fund to become operational in 2021
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European Union negotiators reached a deal on the bloc’s long-term spending plans, moving a step closer to finalizing its landmark 1.8 trillion-euro ($2 trillion) budget and stimulus accord.

The EU is under pressure to wrap up the emergency package so that it will be operational next year, as the continent contends with a surge in coronavirus cases and the worst recession in its history. The recovery plan is expected to add 2% to the EU’s economic output in the coming years, according to European Commission projections.