the Leaders of the 27 EU countries the expected failed negotiations on a long-term plan to save Europe from the consequences of a pandemic coronavirus. This writes Bloomberg at the summit of the countries of the Union, which took place on 19 June at the conference.
the Countries could not agree on the creation of a Fund for the reconstruction of Europe, a concept which in may was presented by the European Commission (EC). According to its plan, Brussels needs to take under the guarantee of the EU on capital markets 750 billion euros and give them to affected economies and industries in the form of grants and loans. The first is allocated 500 billion euros, the second-only 250 billion.
discussion of the plan on June 19 at the level of all countries of the Union for the first time has passed, and its approval was initially doomed. For approval of the plan must be approved by all 27 member States, but it is supported by France, Germany and most affected by the coronavirus in the country of southern Europe.
on Friday, Germany and France, the largest economies of Europe, insisted on keeping the size of the Fund and advocated that the plan was agreed in July.
the Danish Authorities at the conference said that we are for the agreement about the Fund until late summer. While Copenhagen insists that the Fund size was smaller and the money went only to help the most affected countries.
Austria, which is a supporter of fiscal discipline, for its part, has stated that, in her opinion, the money in the Fund must be issued to affected countries in exchange for reforms. Funds should not go solely to stimulate demand.
during the talks, German Chancellor Angela Merkel said the EU partners that the EU is faced with the worst recession since the Second world war. Together with the head of the European Central Bank (ECB), Christine Lagarde, she warned other States that the delay in the approval of economic recovery plan will mean for Europe the horrific consequences. The next stage of negotiations over the recovery plan will be held in July. Then the EU leaders will be able to discuss issues not on the video, and in person.
