EU clears key hurdle for Euro 1.8 Trillion spending package

European Union negotiators reached a preliminary deal with the bloc’s lawmakers on a mechanism linking recovery funds to abiding by democratic standards, moving a step closer to a broader accord on the bloc’s 1.8 trillion-euro ($2 trillion) budget and stimulus package. The EU is under pressure to finalize the emergency package so that it will be operational next year, as a new set of lockdowns across the continent paints a grim picture of Europe’s economic outlook and dims prospects for a quick rebound.

“Introducing this conditionality is a major step and a clear signal that the EU stands ready to protect its citizens’ interest,” EU Budget Commissioner Johannes Hahn said. The deal on the rule-of-law mechanism clears the first of two key hurdles in getting an overall deal and allowing the EU’s 750 billion-euro recovery fund to be up and running in January as planned. Still, lawmakers and EU governments remain at odds over increases to the bloc’s budget, with the Parliament asking for a bigger overall package.