EU leaders to unblock EU budget, recovery fund, set new climate goals

European Union leaders are likely to unblock on Thursday a stalled 1.8 trillion euro package to help revive the economy after the Covid-19 pandemic and agree on new, more ambitious CO2 emissions reduction goals to fight climate change.

During the two-day talks, leaders of the 27 EU countries will also discuss Covid-19 vaccines, resetting relations with Washington and sanctions on Turkey for drilling in contested waters in the Mediterranean.

But the focus will be on unblocking a historic joint EU borrowing of 750 billion euros to finance the post-pandemic recovery and the 1.1 trillion euro EU budget for 2021-2027 that focuses on digitalisation and fighting climate change.

Agreeing on the money is one of the conditions set for a deal on a proposal that the EU cut greenhouse gas emissions by 55% by 2030 compared to 1990 levels rather than the currently agreed goal...