EU recovery package proposal sees 390 billion euro grants, 360 billion loans

FILE PHOTO: European Union flags flutter outside the European Commission headquarters, ahead of an EU leaders summit at the European Council headquarters, in Brussels, Belgium July 16, 2020. REUTERS/Yves Herman

BRUSSELS (Reuters) - Under a proposal submitted to European Union leaders on Monday afternoon, the EU’s economic recovery package to lift the bloc out of a COVID-19-induced recession includes 390 billion euros of grants and 360 billion euros of loans, a document showed.

This is a change from the 500 billion euros in grants and 250 billion euros in loans, originally proposed by the European Commission.

The document, seen by Reuters, is meant as a basis for a compromise agreement after four days of acrimonious talks on the package.

It also envisages that national plans to spend the money would have to get the approval of a qualified majority of EU governments.

The disbursement would also be linked to governments observing the rule of law, a fact that would be established also by a qualified majority of governments.

Reporting by Jan Strupczewski