Merkel: Every day counts in EU recovery fund talks

German Chancellor Angela Merkel said Friday she was keen for a quick agreement on a recovery fund aimed at pulling the European Union out of the coronavirus recession, arguing "every day counts".

Germany, which has the EU's biggest economy and is the 27-nation bloc's most populous country, took over the rotating EU presidency for six months on Wednesday.

That gives it a key role in cajoling other countries to compromise on the recovery fund and the EU budget for the next seven years — ideally when EU leaders meet July 17-18 for their first in-person summit in months.

European Commission President Ursula von der Leyen has invited Merkel and top EU officials to a meeting on July 8 to prepare for the negotiations.

"The road is stony and a lot of good will and readiness to compromise from all sides will be required to reach to achieve our aim", Merkel told the upper house of Germany's parliament in a speech setting out her priorities for the EU presidency.

Merkel and French President Emmanuel Macron in May proposed creating a one-time 500 billion-euro (approx. 563 billion US dollars) recovery fund that would be filled through shared EU borrowing.

That is a big step for Germany, breaking with its long-standing opposition to any kind of joint borrowing.

The EU Commission expanded on the proposal, putting forward plans for a 750 billion-euro (approx. 840 billion US dollars) fund made up mostly of grants.

It faces resistance from countries dubbed the "Frugal Four" — Austria, Denmark, the Netherlands and Sweden — that oppose grants and are reluctant to give money away without strings attached.

"The situation is exceptional, so it requires an exceptional effort", Merkel said.