EU Recovery Plan Splits CEE, Raises Absorption Capacity Questions

Leaders of the four are due to discuss the issue at a meeting on June 11. But experts and officials are sceptical they will bridge their differences.

"We don't expect to see a strong unified front as we did during the migrant crisis," said Vit Havelka, an analyst at the Prague-based Europeum think tank.

There is also widespread concern over the capacity of countries in the region to absorb such funds and spend them wisely.

'Defining moment'

European Commission President Ursula Von Der Leyen. Photo: EPA-EFE/OLIVIER HOSLET / POOL.

Calling the plan 'Next General EU', von der Leyen proposed 500 billion euros in grants to countries hardest hit by the coronavirus and another 250 billion in loans, on top of the EU's long-term budget for 2021-27 which the Commission proposed to set at 1.1 trillion euros.

For the first time, the Commission would borrow the money on financial markets, using its healthy credit rating to ensure low borrowing costs.

Von der Leyen told European parliamentarians that the bloc faced a "defining moment".

"What started with a virus so small your eyes cannot see it, has become an economic crisis so big that you simply cannot miss it," she said.

The plan needs the unanimous support of all 27 members of the bloc, and may yet undergo significant changes.

Czech Republic: 'Absolutely unacceptable'

Czech Prime Minister Andrej Babis and Hungarian Prime Minister Viktor Orban. Photo: EPA-EFE/MARTIN DIVISEK.

Of the Visegrad Four, the Czech Republic voiced the loudest objections.

"These conditions are absolutely unacceptable for us," Prime Minister Andrej Babis declared.

"They reward EU members with high unemployment and penalise...