EU agree to a half a trillion euro corona rescue plan
Published : Friday, 10 April, 2020 at 4:48 PM Count : 204
European Union finance ministers agreed to support half a trillion euros for their coronavirus-damaged economy, but the question of how the restoration money should be spent led to a steep recession.
The deal was executed after the European Union's powerhouse Germany and France took steps to stop the Netherlands opposition to linking economic conditions to emergency governments as an emergency credit to weather-affected governments, and Italy has assured that the block will unite.
However, the agreement did not mention the use of joint debt in recovery financing - which was strongly pressed in favor of Italy, France and Spain, but a red line for Germany, the Netherlands, Finland and Austria.
Whether or not it should simply apply "innovative financial tools" to 2 national leaders in the block, means that many more explicit discussions were still ahead.
"Europe has shown that they can rise to the occasion of the crisis," said French Finance Minister Bruno Le Maire, praising what he said was the most important economic plan in EU history.
Earlier on Thursday, Italian Prime Minister Giuseppe Conte warned that the existence of the EU would be threatened if the novel could not unite to address the Covid-19 pandemic caused by the coronavirus.
For weeks, EU member states have been fighting to present united front to tackle epidemics, money, medical equipment and drugs, fraud, border restrictions and trade sanctions.
Le Maire said Thursday that the deal paved the way for debt consolidation, with his Dutch counterpart, Wapke Hoekstra, pushing against it.
“We are against and against Eurobond. We think this idea will not help Europa or the Netherlands in the long run, "Hoekstra said after the talks were concluded.-Internet