Snapshot of where things are at the Covid 19 recovery summit as of 18:30 CET: There's still no sign of leaders meeting in plenary session, following a day of bilaterals and multilaterals involving @eucopresident Charles Michel, and no fresh negotiating text
2/ According to one diplomat, there is a growing feeling among some member states (neither frugal nor southern), that the longer the summit goes on the more concessions the Frugals are demanding
3/ Overnight the level of grants (as opposed to loans) was at €450bn, but it was soon clear that that wd go down to €400bn (which Italy and Spain seemed resigned to). However, the Frugals have been pushing to lower that to €375bn or 350bn, acc to one diplomat
4/ The governance issue seems to be close to resolution: if there are concerns about a recipient country abandoning its reform program one or more MS has 3 days to raise concerns at ECOFIN level, and if no resolution there it goes up to the European Council (ie, heads of govt)
5/ The solution is still being digested by the Italians and it took a lot of legal analysis by the European Commission legal services due to its complicated nature
6/ Further irritating middle countries is the push by the Frugal four to get more money for their rebates, approx €400m each to be precise. As one source points out, this wd give them bigger rebates than they wd have had if the UK hadn't left the EU
7/ Charles Michel thought to be keen to press on into the night, but there is a fear among some capitals that the longer things go on the more concessions the Frugals will demand. Also, EU leaders have governments to run
8/ On rule of law, some suggestion the can might get kicked down the road, but that wd anger a lot of people
9/ On the €5bn cut to Rural Development, down from €15bn, it's understood this would mean a reduction of €125m for Ireland over a seven year period from the original Recovery Fund offer
10/ Important to note that the original offer was over and above the CAP element of the seven year EU budget, which is a separate negotiation. I understand @MichealMartinTD is seeking a special allocation for Ireland to compensate for the loss of €125m over the 7yr Recovery Fund
