The European Council meetings follow a very predictable pattern. Initially, political leaders engage in sabre rattling on sensitive political issues like finance and economics. Some threaten to use their veto if they do not get what they want. Eventually, they meet and strike an agreement which is scarce on detail and often no more than a declaration of intent.

Member states leaders return home and claim that they have made substantial gains for their country. Political leaders declare that, after long hours of discussion, they have once again achieved consensus on issues that before the Council meetings appeared to be unachievable.

The last Council teleconference meeting followed the same pattern. Italy, Spain and France warned that in the present medical and economic emergency the more prosperous northern EU states had to show solidarity with the weaker nations.

This could be done by agreeing to mutualise the debt to be incurred to rebuild the EU economies after the pandemic bloodbath.

Failure to support the more vulnerable states would shatter the dream of the Union.

Eventually, EU leaders agreed on a rescue package that falls short of what Italy, France and Spain wanted, but which gives the EU some more time to decide about its future as a political and economic union. Germany, the Netherlands and other northern European states continue to object to the issue of Corona Bonds guaranteed by all member states for the recovery of the EU economies.

However, the Council agreed to the setting up of an EU Recovery Fund that initially would rely on €540 billion to help repair the member states’ economies. This fund will be part of the EU’s seven-year budget framework that still needs to be agreed.

European Parliament president David Sassoli called this rescue package “the new Marshall Plan for Europe”, except that this time the funds will be coming from European countries and economies.

While details of the Council rescue package still need to be approved following recommendations by the European Commission, it will surprise no one if further squabbling between member states continues to expose the weak political leadership ofthe EU.

Countries like Italy, France and Spain want EU support to be in the form of grants rather than loans. Germany and the Netherlands want the Commission to borrow money to finance the recovery package by issuing 40-year bonds to be repaid by member states.

The political backdrop to the latest Council agreement on the Recovery Fund is worrying for the future of the EU. Populist parties in France, Italy and Spain will exploit this disagreement on the form of aid needed. They will demonise the northern states for being stingy when it comes to showing solidarity with countries with weaker economies.

Once again, the EU political principals and institutional agents will be portrayed as kicking the can down the road in order to gain time hoping to build consensus for future negotiation sessions. The EU increasingly risks becoming a two-speed political union which is held together by the common interest of having a single market with free movement of people and goods.

Germany, which exports 40 per cent of its goods to other EU member states, will probably have to fork out more money to support the next Union budget. But political, social and economic integration look like remaining just an aspiration.