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Negotiations at a summit of EU leaders, who have been trying for three days to agree the next seven-year Multiannual Financial Framework, have got stuck over the amount of economic recovery grants.
The frugal four - the Netherlands, Denmark, Sweden and Austria - demand, according to diplomatic sources, that the Next Generation EU instrument be slashed from €750 billion to €700 billion and that half be allocated in grants and half in loans. Initially, the plan was to allocate €500 billion in grants and €250 billion in loans.
Germany, France and most other member states are against the grant amount being below €400 billion.
On Saturday, European Council President Charles Michel proposed reducing the grant amount to €450 billion, but this did not satisfy the frugal four, which also demand higher rebates on their contributions to the European budget.
In his proposal, Michel envisaged rebates for the frugal four and Germany. However, the frugal four demand a far higher deduction, whereas Germany had no objections to the proposal.
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