what does France gain from it?

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                More than 90 hours of negotiations, barely less than for the historic record of the Nice summit in 2000, to finally obtain, in the early morning of July 21, a "deal" between the 27 member states of the European Union.  They agreed on the 2021-2027 budget and above all on a recovery plan to counter the effects of the crisis linked to the Covid-19 pandemic, an agreement for which France has fought.  So, what did she gain?
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                                    <p>France will obtain 40 billion euros of subsidy.  A real boost in the eyes of Bruno Le Maire, the Minister of the Economy who spoke this Tuesday, July 21 in the morning on <em>France Info</em>. « <em>40 billion euros are immediately available, because the recovery is now</em> ", did he declare.

This sum will make it possible to finance a good part of the recovery plan of France. The calculation is simple: this represents 40% of the 100 billion promised by Emmanuel Macron to put the French economy back on track. This plan will be presented in detail at the re-entry Council of Ministers on August 24. According to Bruno Le Maire, the funds will begin to be mobilized this year and will be reimbursed in 2021 by the European Union.

These funds will go to the hospital or will be used, among other things, for energy renovation projects for buildings or for the development of hydrogen in France. Indeed, the plan adopted last night sets the objective of devoting 30% of expenditure to the fight against global warming. The budget and the plan must comply with the objective of climate neutrality of 2050, a criterion which was part of the conditions defended by the Elysée.

An important line for France in the budget is the Common Agricultural Policy (CAP). France, the main beneficiary, welcomed having ” secured »The CAP budget for the next seven years. 336 billion will be supplemented there, including 258 billion euros in direct payments. And the CAP budget, like that for territorial cohesion, is supplemented by allocations within the recovery plan. This is less than for the previous 2014-2021 budget, but a diplomatic source assures that the sum paid to farmers will be increased by inflation. And whatever in itself, according to the first calculations of the Ministry of Agriculture, France will finally be able to benefit from 62.4 billion euros via the CAP over the next period (2021-2027), against 62 billion during the previous one.

► To read also : EU recovery plan: the consensus of 27 struggles to mask some reservations

The end of a European taboo

France is not winning only in economic terms. For Paris, it is at least in part a victory in terms of politics, of European philosophy. The recovery fund will be financed by a loan made by the European Commission on behalf of the 27. On this scale, this represents an unprecedented mechanism which pushes the European Union towards greater integration and solidarity.

However, France pleaded in favor of these loans from the beginning of the crisis but the subject was taboo, a few months ago, including in Germany. However, it has pushed for the adoption of this plan since May.

Moreover, the famous Franco-German couple emerged strengthened from this ordeal. French President Emmanuel Macron and German Chancellor Angela Merkel have, according to diplomatic sources, worked hand in hand. They even left together one of the meetings with the “frugal” countries.

► See also: EU recovery plan: the consensus of the 27 struggles to mask some reservations

An agreement and many concessions

However, France also had to make many concessions. Starting with the breakdown between the amount of loans and grants. One of the priorities of the Elysee Palace was that the subsidy part reach 500 billion euros, as proposed in the Franco-German plan in mid-May. The final plan ultimately provides for 110 billion less.

In terms of governance, an “emergency brake” system has been introduced. This allows a state to request that the recovery plan of another member country be studied at a European summit. This does not really correspond to the vision of France which wanted a fast and not very intrusive process.

And above all, before the summit, Paris judged the proposal of Charles Michel, the President of the European Council, on “discounts”, too high. However, this rebate which certain countries benefit from their contribution to the European budget has increased compared to what was planned before the summit, up 91% for Denmark, 22% for the Netherlands and 138% for the ‘Austria. However, France is one of the contributors to the discounts.

Finally, the European Union will eventually have to reimburse the funds borrowed by the European Commission. The deadline is 2058 at the latest. The benefit for each State will therefore depend on the ability of the 27 to agree on the development of “own resources”. A non-recycled plastic tax should be implemented in early 2021. Other avenues are much less refined at this stage.

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https://www.rfi.fr/fr/europe/20200721-plan-relance-ue-quy-gagne-la-france-economie

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