The European Union summit is putting Dutch Prime Minister Mark Rutte under pressure to agree to the EU’s multiannual budget, particularly the coronavirus recovery fund. The Netherlands and three other ‘stingy’ countries want part of the EU support to be repaid.
German Chancellor Angela Merkel and European Commission President Ursula von der Leyen said at a joint press conference that urgent action is needed to overcome the crisis. EU countries must look beyond their own interests, Von der Leyen stated, without naming specific countries.
At the start of the (rotating) German EU presidency, Chancellor Merkel said the Union is on the brink of the greatest crisis since its founding. She said that the coronavirus pandemic and the anticipated economic crisis demonstrate that countries must cooperate rather than isolate themselves.
The EU heads of government will meet on July 17 and 18 in Brussels, hoping—after two failed previous attempts—to reach an agreement. Because the Netherlands is viewed by the EU summit as the instigator and leader of the ‘frugal four,’ Dutch Prime Minister Rutte will host EU President Charles Michel in The Hague on Monday evening. The President of the European Council will visit Rutte’s official residence, the Catshuis, where Michel will undoubtedly try to persuade Rutte.
French President Emmanuel Macron already visited Rutte last week to discuss the fund. The liberals Rutte, Macron, and Michel, the social democrat Sánchez, and the Christian democrat Merkel formed the group of five who after the European elections shaped Ursula von der Leyen’s new European Commission. “Together out, together home” is likely to be reminded to Rutte.
After the meeting with Michel, Rutte must attend a working dinner with Chancellor Angela Merkel in Berlin on Thursday evening. She aims to reach an agreement at the summit on July 17 and 18. The countries also need to agree on the EU’s multiannual budget. Earlier this year, Merkel acknowledged that Germany will have to contribute more to EU plans in the coming years.
There are two key conditions for Prime Minister Rutte. Firstly, the cut on the Dutch contribution to the EU budget must be maintained. Also, new plans must be funded by cutting older programs, although the Netherlands does acknowledge that more money needs to be added for Climate Policy and the Green Deal. Secondly, the southern European EU countries must continue with the agreed reforms if they want support from the corona fund. These reforms concern, for example, pensions, tax collection, and the labor market.
On Friday, Rutte reiterated that he believes there is no hurry for the recovery fund: no country has yet submitted applications. There are not even any real calculations or figures regarding the extent of the ‘damage.’ This will only be known at the earliest in a few months or next year. The Prime Minister does not see an “absolute necessity” to reach an agreement on the corona fund at the EU summit in two weeks. He would like it to succeed, however, as it “might save a lot of hassle and a deterioration of the atmosphere.”
The Netherlands is not alone in its opposition. It resists the Commission’s recovery fund proposal together with Austria, Denmark, and Sweden. The resistance is especially unwelcome in southern European countries, but also in France, Germany, and Poland.