A key battle when leaders meet for the first time since the pandemic exploded on the continent will have to do with how aid is managed.
The frugal states want to play a key role in approving and distributing stimulus fund grants and loans.
The Netherlands, led by Prime Minister Mark Rutte, asked for unanimous approval, which would in fact give any country a veto.
Mr. Michel proposed a system for approving the expenditure decisions of the Commission by a weighted vote.
Southern states hit by a pandemic, such as Spain and Italy, should be the biggest winners in the financial package.
Madrid and Rome have postponed plans for a “political” system of ratifying the funds, saying it would cause huge delays and hamper recovery efforts.
They proposed a system in which Commission decisions are automatically approved, unless they are overturned by a qualified majority of EU capitals.
Brussels sources do not know whether governments will be able to negotiate an agreement during Friday’s negotiations, which some say could continue on Sunday.
Leaders have failed at several online summits to find a compromise to satisfy all member states.
An EU official said: “It has become clear that the deals are not going to be made online.
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He added, “Let’s put this debate aside now.
“Let’s solve the economic problems, start our economies, start creating jobs, and then continue the debates on the rule of law.”
Hungary and Poland could both be big winners of the stimulus fund despite the constant disregard for bloc rules and frequent clashes with Brussels.