1/
What EU leaders agreed at this European Council meeting #EUCO is truly historical.

The combined volume of EU 7-year budget #MFF and the package to mitigate the impact of Covid-19 #NextGenEU (€1.8 trillion) stands out the most.

Yet there are other important things to watch:

2/
It was one of the longest #EUCO meetings, equalling the one that negotiated the Nice treaty back in 2000.

After five exhausting days of negotiation, the deal reached by the 27 leaders increases the "own resources" directly collected by #EU institutions.

A small federal step.

3/
Most significantly, the #EUCO decided that for the new #NextGenerationEU, "the EU can borrow funds on the capital markets on behalf of the Union up to EUR 750 billion"

The arm wrestling ended in a split for 390bn in grants and 360 in loans to the 27. https://www.ft.com/content/713be467-ed19-4663-95ff-66f775af55cc">https://www.ft.com/content/7...

4/
While every leader will claim victory at this #EUCO, some have won more than others.

Rule of law conditions were dropped for the sake of https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇵🇱" title="Flagge von Polen" aria-label="Emoji: Flagge von Polen"> andhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🇭🇺" title="Flagge von Ungarn" aria-label="Emoji: Flagge von Ungarn">.

The "frugals" https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇳🇱" title="Flagge der Niederlande" aria-label="Emoji: Flagge der Niederlande">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇦🇹" title="Flagge von Österreich" aria-label="Emoji: Flagge von Österreich">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇸🇪" title="Flagge von Schweden" aria-label="Emoji: Flagge von Schweden">https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇩🇰" title="Flagge von Dänemark" aria-label="Emoji: Flagge von Dänemark">got incresed their rebates (paybacks to budget contributions, legacy of Tatcher era).

Picture: @MehreenKhn

5/
Yet, something more important was lost in this #EUCO. Most of the thematic programs under the #NextGenerationEU were slashed.

@EPLO_ and other colleagues had already sounded the alarm before the summit about the #MFF EU budget implications:

http://eplo.org/wp-content/uploads/2020/07/EPLO_Letter-to-EU-MS-Re.-EUCO-President-Proposal-for-EU-MFF-2021-2027.pdf">https://eplo.org/wp-conten...

6/
Other components under #NextGenerationEU were reduced to accommodate the bargain.

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔸" title="Kleine orangene Raute" aria-label="Emoji: Kleine orangene Raute">The climate-neutral transition fund (JTC) down from 30 to 10bn
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔸" title="Kleine orangene Raute" aria-label="Emoji: Kleine orangene Raute">Research funds Horizon Europe down to 5bn
https://abs.twimg.com/emoji/v2/... draggable="false" alt="❌" title="Kreuzzeichen" aria-label="Emoji: Kreuzzeichen">10.5 bn for foreign policy and international cooperation agenda entirely SLASHED

7/
These cuts can have big consequences on the EU& #39;s role as a global player.

The #EUCO original proposal included:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▶️" title="Nach rechts zeigendes Dreieck" aria-label="Emoji: Nach rechts zeigendes Dreieck">- Additional €10 bn for humanitarian relief;
https://abs.twimg.com/emoji/v2/... draggable="false" alt="▶️" title="Nach rechts zeigendes Dreieck" aria-label="Emoji: Nach rechts zeigendes Dreieck">- Additional €5.5 bn as a complement for the neighbourhood, development and international cooperation objectives.

8/
Although the EU comes relatively stronger out of this #EUCO, this milestone adds a toll on its internationaland humanitarian role.

This is a difficult start if https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇪🇺" title="Flagge der Europäischen Union" aria-label="Emoji: Flagge der Europäischen Union"> states want to preserve their global ambition.

We @CrisisGroup will keep looking at how they can do it better.