Day 3 of #euco will resume with Charles Michel having to find a way to heal rifts between east and west (over the rule of law), and north and south (over volumes and governance) or risk failure after ~60 hours of summiting ft.com/content/4553ea… 
#euco day 3 won't start at noon as planned as leaders continue to hold bilateral meetings. Reminder this will be likely final push from Charles Michel to sketch route to a compromise - if not we come back at end of July.
Final push to get new negotiating draft with reduced grants in the package. Merkel, Macron, Michel and Commission now meeting Frugals & Baltics to test what everyone they can live with. Given positions, something close to but below €400bn could end up a landing zone #euco
Rutte has extended his hotel for an extra night. Imagine he haggled for a frugal discount #euco
Now it is the turn of the south. Furgal strategy on grants is to call their bluff: they don't think 🇮🇹🇪🇸 etc will kybosh a deal for the sake of €20-35bn in grants
Full summit not likely to start before 1600. At least four hours late as leaders haggle over magic formula that will satisfy Frugals and the rest on size of the grants. Ballpark is €375bn but unclear whether the composition or amount is enough for the south #euco
Frugal offer of €350bn plus top up to rebates - and southern demand of €400bn - would suggest that that €375bn is looking more and more like a #euco landing zone
Direction of travel on grants is going to be up from €350bn (the Frugals offer) but their demand to top up rebates shows that they could be trade off to push up grants closer to €400bn - a totemic number for France, Germany and the south.
#euco dinner starts with growing pessism about chances of a breakthrough tonight. Both sides - Frugal5 and rest - entrenched in their camps over size of grants
Frugals calculation during #euco has been to call the bluff of South and other big recipients of recovery fund. They think ultimately 🇪🇸🇮🇹🇵🇱 etc will never veto a deal that gives them billions of €'s. Tonight's dinner will push that logic to its limits
There is only a €50bn gap between Frugals and the rest over grants but looks very unlikely that leaders will bridge the gap tonight. The Frugal logic is hitting its limits, without success
Growing pessism that the €50bn gap won't be bridged at possible second summit at the end of the month either. Diplomats warn that level of acrimony and frustration over last three days won't be helped by a break. Could even be made worse... 😳 #euco
#euco takes a break. In sign of the times, with talks on grants on verge of collapse earlier during the dinner, leaders decided to take some respite by moving on to the rule of law.
Could be #euco squeaky bum time as Kurz and Rutte go to see Michel in the dinner break. Pressure is on the two of them to move from €350bn. If not, chances of deal this weekend very small. And talk that a return summit would need a long "cooling off" period until August
*correction: it's now already Monday and not the weekend. Thank you anal time-keeper @DaveClark_AFP
In what could be one last push for a deal after over 72 hours, the two toughest Frugals 🇳🇱🇦🇹 are being asked to move upwards from €350bn in loans. And recipients 🇪🇸🇮🇹 etc will be tested out to see if they can accept <€400bn
After threatening to jump in his helicopter and leave last night, Macron spent dinner session tonight ticking off (almost yelling) at the Frugals, telling them that France and Germany are the big payers who have built the EU that the Frugos benefit from
Frugals and Finns convene at 1.30am. No drinks, just few cherries to share between them. Very on brand
In almost entirely predictable chain of events, €375bn is now the grants level that Frugals are inching slowly towards (splitting the difference between €350-€400bn). But, but, but they need the south and France to meet them halfway. #euco
Rutte has lots of stuff on his mind tonight
#euco summit due to restart at 0415
Summit due to restart just after 4am with Frugals having upped the offer to €375bn of grants. That's less than €450bn in a draft on Friday - key question is whether main recipients can live with it
Update at 05.35: summit still to start as leaders haggle over the €375 grants figure which has now been pushed up to €390bn. That's still below French and southern demands for €400bn but is creeping higher #euco
Summit resumed and ended after just 7 minutes at 5.52am. Leaders were told by Charles Michel that new basis for an agreement is €390bn in grants. Meeting due to resume at 1400 on Monday afternoon with expectation of new negotiating draft after everyone gets some sleep
More time for sleep: summit to resume at 1600 on Monday afternoon
Austria's Sebastian Kurz - one of the Frugals - goes back to his hotel happy with new proposal that will reduce grants to €390bn. Unclear if it also involves more rebates for the Frugals
Rutte also leaving to get some sleep says negotiations are "back on track" after the 5am breakthrough tonight #euco
Frugals leaving the summit saying they are satisfied going into day 4 (!!) of #euco. The movement from €350bn to €390bn on grants however doesn't come for free. They will also make a push tomorrow for addition rebates in the EU budget
After being painted as the bogeyman by France, Hungary, Italy and countless unnamed EU diplomats his weekend, Rutte says he doesn't "care" about attacks on him and will continue to fight for Dutch interests and voters #euco
Summary from day 3-4 of #euco (heading for all-time record summit)
- new draft today to offer €390bn in grants
- Frugals will make a push for higher rebates as their price
- governance likely to be solved between 🇳🇱&🇮🇹
- rule of law all to play for 🤷♀️
ft.com/content/c8d79b…
- new draft today to offer €390bn in grants
- Frugals will make a push for higher rebates as their price
- governance likely to be solved between 🇳🇱&🇮🇹
- rule of law all to play for 🤷♀️
ft.com/content/c8d79b…
