Thread by @NaomiOhReally

Habemus papam! #EUCO

"We did it. Europe is strong, Europe is united," declares an astonishingly energetic @eucopresident after a leaders pulled another all-nighter.
"These were of course difficult negotiations in difficult times for all European citizens, a marathon that ended in success for all 27"

"The overall volume of €750 billion has been kept, grants are a little bit less with €390 billion," says Angela Merkel. "That we needed so many days shows that we've come from different vantage points but what matters is we came together." #EUCO

"This recovery fund that is based on European solidarity is indeed a historic change, a historic step for Europe," says Emmanuel Macron. "It needed a spirit of compromise to make this happen and I want to thank all colleagues that have show this." #EUCO

Merkel notes there may be "very difficult discussions" with the European Parliament, which has threatened to veto a deal if budget was not increased.
"I hope that colleagues in the European Parliament have seen that we wrestled with each other to come up with a solution." #EUCO

The price of the deal: rebates -- pioneered by Britain and originally proposed to be scrapped after Brexit -- increased to the 'frugal' net payers Austria, Denmark, Netherlands and Sweden; Germany opted not to increase its existing rebate.

Cuts to clinch deal, compared to initial Commission proposals:
- Horizon 2020 [research] 13.5bln -> 5bln
- InvestEU [business investment incentives] 30bln -> 5.6bln
- Rural development 15bln -> 7.5bln
- Just Transition Fund [climate transition subsidies] 30bln -> 10bln

Here's a big one: EU4Health, a plan to create strategic medical stockpiles, a pan-EU medical response force, strengthen health systems and improve warning systems for epidemics, is largely axed.
€9.4bln -> 1.7bln
(Initial proposal is here ec.europa.eu/health/funding…)

Here is the conditionality on rule of law and proper expenditure NL pushed for & Hungary resisted. It's not a veto: qual majority in Council must approve Commission decisions to allocate funds. Member states can complain and trigger a Council discussion if they suspect violation

How is the goal of EU carbon neutrality by 2050 woven in?
Target of 30% of all EU spending must be for achieving climate goals.
There are €7.5bln in subsidies for climate transition. If member states do not commit to climate neutrality by 2050 they can only get half their share

As @tverellen points out the rule of law conditionality mentioned here relates only to the €750bln recovery funds

https://twitter.com/NaomiOhReally/status/1285464199301345280?s=20

Below is the proposal for budget "the Commission will propose measures in case of breaches for adoption by the Council by qualified majority"

By the way EU communications usually describe a thousand million as a billion. So my brain nearly overheated this morning trying to grapple with the way these figures are written

NB: these cuts here are in the €750 bln recovery fund part of the agreement. In the €1.07 seven-year MFF part of it, some of these funding headings were increased.
Overall result is that research funding does not increase compared to last budget

https://twitter.com/NaomiOhReally/status/1285448289941434373?s=20

Health and climate transition subsidies are reduced to far smaller than planned, but are still more than in the last budget.
One item, solvency supports for businesses, was axed altogether, though the Commission hopes national governments will make up for this themselves.

Ireland's estimated overall CAP payments are €10.73 billion for the next seven-year period, compared to €10.68 billion in the last seven years, according to government calculations irishtimes.com/business/agrib…