If passed, it would be the biggest EU stimulus package in history, but it must be adopted unanimously by the 27 member states
Ursula von der Leyen, president of the European Commission, on May 27 2020. Picture: BLOOMBERG/GEERT VAN DEN WIJNGAERTEU chief Ursula von der Leyen proposed a €750bn post-coronavirus recovery fund for Europe on Wednesday, but will have to win over sceptical member states to push it through.
Paolo Gentiloni, the EU economic affairs commissioner, hailed the proposal as a “European breakthrough” that would “tackle an unprecedented crisis”. The virus has killed more than 173,000 people in Europe and put its economy in a deep freeze, with businesses only slowly reopening and tight controls on borders still stifling travel and trade.
In all, the EU would offer grants of €405bn, with €28.8bn going to Germany and €38.7bn to France. In addition, the countries would get loans, with Italy receiving credits for €90bn and Spain €31bn. The commission now faces a counter-proposal from the “Frugal Four”: northern EU member states who have traditionally opposed transferring budgets to the indebted south. They have insisted on a loans-only rescue, accusing southern Europeans of living beyond their means and piling on debt instead of choosing cost-cutting reform.
“We potentially see a sea change in European macro-economic policy,” said Greens MEP Philippe Lamberts. “It’s not yet a fiscal union, because it’s limited in time, but it creates an important precedent.”
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