EU Summit: Recovery Fund plenary to resume at 0415 GMT, one-last push amid an impasse

After struggling three straight days to reach an agreement over the long-term budget and the coronavirus recovery fund, the European Council President urge the leaders to make the one last push and break the deadlock on the ‘mission impossible.”

Michel said: “My hope is that we reach an agreement and that the headline ... tomorrow is that the EU has accomplished mission impossible. That is my heartfelt wish ... after three days of non-stop work.”

Key updates

The proposed EUR 750b recovery plan is still being negotiated.

German Chancellor Merkel has warned they a deal may not be concluded at this meeting.

There is still disagreement amongst the 27 leaders.

The northern 'frugals' want fewer grants, more in loans.

Denmark reportedly ready to accept EUR400 billion in grants and EUR350 billion in loans, per Bloomberg.

EU summit is split for a break and is set to resume at 4.15 GMT.

ECB President Christine Lagarde said: "Ideally, the leaders' agreement should be ambitious in terms of size and composition of the package, broadly along the lines of what has been proposed by the Commission."

Market reaction

With the EU Recovery Fund deal still in a limbo, the shared currency remains under pressure while the greenback draws the haven bids amid persistent coronavirus concerns.

At the press time, EUR/USD is down 0.07% on a daily basis, at 1.1418.