Berlin and Paris propose to create a Fund for the recovery of the European economy with a total volume of €500 billion. this was stated by German Chancellor Angela Merkel after talks with French President Emmanuel Macron. According to her, in connection with the coronavirus pandemic of the European Union is experiencing the worst crisis in its history, and this situation requires an adequate response.
the Economic life of the EU should recover quickly. Accordingly, the Fund will have to form in a very short time – at the expense of the EU budget. Money from the Fund will go to the most affected sectors and regions, Merkel said.
Previously, the European Commissioner for Economics, Paolo Gentiloni said that the Old world is waiting for a deep recession: by the end of 2020, GDP could fall by 7.5%, as predicted, in turn, the IMF. And it will be worse than during the global crisis of 2008-2009.
Until now, EU States differed in the positions regarding funding and criteria for the granting of emergency assistance to overcome the consequences of the pandemic. In particular, failed to agree to issue so-called Eurobonds. And if now France and Germany has found a compromise, it does not mean that their plan will approve the rest.
“Europe was a patchwork quilt. Unlike the US, there are too many instances and divergent interests, – says senior analyst of “Finam” Sergey Drozdov. In America, when it comes to measures to support the economy, Republicans and Democrats act in concert. The EU bureaucratic institutions have a different, more complex and branched structure.”
as announced Merkel amount of 500 billion euros, it is huge. Most developing countries cannot afford such costs. Well, the Euro is the second largest global reserve currency, fueled by the economies of all EU member States.
If you talk in this context about Russia, its economy, national currency, and especially about measures of support of the population and business, then we look extremely pale.
in 2015, reminds Sergey Drozdov, all the surplus budget rule (in excess of $42.4 per barrel) reported in the national welfare Fund. The formation went on for over four years. The authorities promised that it will recuperate, when there comes a rainy day.
Now it happened, but large-scale spending, we have not seen.