EU countries will create a Fund that will allow the European economy to exit the recession as quickly as possible after the end of the coronavirus pandemic. The European Commission will develop concrete proposals in this regard by May 6, the heads of state and government of the EU countries agreed during a videoconference. At the same time, German Chancellor Angela Merkel stressed that she still rejects the idea of issuing joint European bonds to Finance the new Fund.
EU Council President Charles Michel said on Twitter that the participants of the EU summit, together with European Commission President Ursula von der Leyen, approved a “Joint roadmap for economic recovery,” which provides for unprecedented investment.
The European Commission was asked to develop specific proposals for the creation of the Fund, linking them with the EU’s multi-year budget for the period from 2021 to 2027. The talks are discussing an amount of up to 1.5 trillion euros. Angela Merkel noted that the exact amount has not yet been determined, the European Commission was asked to calculate specific needs, but it is already clear that “we are not talking about 50 billion euros.”
500-billion loan package
Christine Lagarde, the President of the European Central Bank, warned in a video conference against insufficient response to the economic consequences of the coronavirus crisis. We risk doing too little and too late, she said, noting that the ECB estimates that GDP in the Euro area could fall by 15 percent this year.
EU Finance Ministers two weeks ago agreed on a package worth 540 billion euros to help European countries-debtors, businesses, and workers. Participants of the EU summit on April 23 finally approved this plan. According to Charles Michel, the promised money will be available from June 1.