Portuguese and Italian PMs hold talks in Lisbon

The prime ministers of Italy and Portugal met in Lisbon on Tuesday, stressing the urgency for timely approval of a proposed EU recovery fund to help its 27 member countries cope with the economic fallout of the ongoing pandemic.

“The figures demonstrate the urgency of clinching a deal” at an EU summit next week to discuss financial measures, Portuguese Prime Minister Antonio Costa said.

Conte, whose country is forecast by the EU’s executive Commission to endure a double-digit contraction after years of slow growth and high public debt, said Europe “needs to move quickly” to address the continent’s social and economic emergency.

The EU economy as a whole will contract by 8.3% this year, according to the latest predictions released earlier Tuesday by the Commission.

The EU Commission is proposing a 750 billion-euro (849 billion US dollar) economic recovery fund made up mostly of grants.

The proposal has encountered resistance from EU countries dubbed the “Frugal Four” - Austria, Denmark, the Netherlands and Sweden - which oppose grants and are reluctant to give money away without strings attached.

Southern European countries are pushing hard for a deal at the negotiations in Brussels next Friday and Saturday.

Costa, who received Spanish Prime Minister Pedro Sánchez on Monday for talks on the same issue, said Conte’s visit was to coordinate positions and smooth the path to an agreement.