€500 billion plan discussed by German and France leaders
Germany's Angela Merkel and France's Emmanuel Macron are proposing a €500 billion European coronavirus reconstruction plan.
Merkel said
- We need a European recovery fund, Germany and France discussed that this today
- We must act in the European way so that we all get out of this crisis well
- Goal is that Europe comes out of crisis stronger
- The recovery fund that should give grants, not loans to member states
- Fund must be in line with EU law
- There is a possibility of EU treaty changes in the longer run, but now it's about agreeing on a short-term measures
- It is crucial that EU bonds will be paid back via EU budget, national parliaments will have to give green light
- a package has combined volume of €3 trillion
- France – German proposed EU strategic stock of drugs, test kits
- This is the biggest challenge in history of EU
- Won't have any complacency on rule of law in EU members
- repayment of €500 billion will be over a long time., Germany's share will be 27% as in regular EU budget
- Germany parliament must approve recovery fund
Macron comes out with his statement:
- Call for EU public health sovereignty, say objective should be to develop vaccine within EU over the short term
- Jointly called for increase of European budget over 1st few years
- Call for ambitious, temporary and targeted recovery fund within MFF
- Propose to authorize European commission to find recovery by borrowing through financial markets in the EU's name
- Recovery fund should be given €500 billion for EU grants to go to hardest hit sectors and regions
- Recovery fund will be integrated in decision on EU's own resources with clearly identified volume and expiry date
- A quick EU agreement on MFF, recovery fund is necessary
- This recovery plan will be supported by commitments from member states to undertake healthy economic policies and reform program
