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EU Clears Key Hurdle for 1.8 Trillion-Euro Spending Package

  • EU Parliament, presidency reach deal on rule-of-law mechanism
  • Negotiations still ongoing on issues including size of funds
A near-deserted street during a national lockdown, in Paris, Nov. 2.

A near-deserted street during a national lockdown, in Paris, Nov. 2.

Photographer: Nathan Laine/Bloomberg
Updated on

European Union negotiators reached a preliminary deal with the bloc’s lawmakers on a mechanism linking recovery funds to the adherence to 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 lockdowns across the continent paint a grim picture of Europe’s economic outlook and dims prospects for a quick rebound. The stimulus plan is expected to add 2% to the EU’s economic output over the following years, according to the European Commission.