EU reaches agreement on a financial package against Corona-crisis

After four days and four nights of continuous negotiations exhausted President-in-office Charles Michel, at dawn, was able to announce in Brussels the breakthro

EU reaches agreement on a financial package against Corona-crisis

After four days and four nights of continuous negotiations exhausted President-in-office Charles Michel, at dawn, was able to announce in Brussels the breakthrough. The 27 member States of the EU agreed, after a bitter dispute, acting unanimously on a construction Fund in the amount of 750 billion euros, the economic consequences of the Corona-pandemic together to fight. In addition, the heads of state and government adopted the EU budget for the next seven years in the amount of 1074 billion euros. Taken together, this is a € 1.8 trillion, the largest financial package of the EU ever in its history.

Merkel: We have gotten together in the end of the EU, German Chancellor Angela Merkel, who negotiated together with Michel, the compromise, had wanted a "massive" build-up Fund. With this package, you see on the target. "It wasn't easy. That we took so long, also shows that we came from different directions. What matters to me is that we have finally gotten together and that we are convinced at the end of all, to make the most of what we have decided is really something," said the Chancellor in a joint press conference with the French President, Emmanuel Macron.

subsidies lowered

Merkel and Macron had suggested to distribute € 500 billion from the reconstruction Fund as grants to member countries, which suffered from the pandemic. However, coveted the "saving Five" (the Netherlands, Austria, Denmark, Sweden, Finland) on. Therefore, the amount was reduced to direct grants to 390 billion euros. 360 billion euros to be passed as loans to the needy countries. In spite of the sharp opposition between net payers and net receivers is the head of the summit round, Charles Michel, with the historic agreement is satisfied. "These were, of course, very difficult negotiations in very difficult times for all Europeans. A Marathon that ends in a success for all 27 member States. This is a good deal, a strong Deal. Most importantly, This is the right Deal for Europe at the right Moment," said Charles Michel.


looking forward To pressure the Netherlands to control introduced-a mechanism to ensure that recipient countries, such as Italy, Spain, Poland or Greece, use the money from the building Fund for meaningful projects. You can't write me a blank check, it was said by the Chancellor of Austria Sebastian Kurz. Italy's Prime Minister, Giuseppe Conte, whose country was hit by the pandemic, difficult, and rejoiced in the success in the negotiations. Italy may receive up to 150 billion euros from the corona Fund. "We also now have a great responsibility. The € 150 billion that we get, should we use now to make Italy strong and regroup," said Conte. Europe is now an ambitious and effective Plan to combat the worst recession it had ever experienced.

Only weak as a rule, in the rule of law

the Chairman of The summit round, Charles Michel, division, not with the word "historically" for the laced financial package and the budget for the next seven years. "It is the very first Time in our history that the budget is linked to our climate change objectives. For the first Time, the rule of law is a decisive criterion for the disbursement of funds. It is the first Time that we support our economy together in a crisis," said Michel. The question of the rule of law, there had been in the last four days of sharp debate. Because the Hungarian Prime Minister Viktor Orban threatened to Veto the entire budget, is to be found in the summit conclusions, only a very General reference to the rule of law as a criterion for payouts from the budget. Orban celebrated the "victory".

The Chancellor believes, however, that the reference to development of a control is sufficient the method. Angela Merkel also announced that the ongoing criminal proceedings to be concluded in accordance with article 7 of the EU treaties, against Hungary until the end of the year. "It is up to Hungary to meet the conditions," said Merkel on this. The EU accuses Hungary and Poland, the constitutional principles and values to undermine and disregard. So far, the proceedings against Hungary, and Poland had been followed by the member States only slowly.

Macron: An example for the world

For the first Time in its history, the EU is financing the Corona's relief Fund to run into debt, for which the 27 member States together. The welding of the EU member States much closer together, believes the French President, Emmanuel Macron. He was convinced that the joint financial management was a decisive breakthrough in the strengthening of the EU and also the Euro community. "It is the first Time that we all work together to create a economic program, and together guarantee. It is historically unique, that we trust each other so much," said Macron in Brussels.

At his side, the Chancellor, the fiscal turnaround has the common fault recording sat. Until the middle of April, when Merkel and Macron proposed this concept, also belonged to Germany and to the "Thrifty" among the EU member States. In view of the pandemic, the German government is now willing to reach deep into the bag and put a net of 133 billion euros in the construction Fund.

payouts between 2021-2023

The German Chancellor and the French President, the new financial understand the political Unity of the EU as a Signal to the world. Solidarity-based, multi-national Trade is worth to read the message, said Emmanuel Macron. "We are 27 in the table and have created a common budget. In what other policy area in the world that would be possible to do? In no other."

the money from The new construction Fund will be disbursed from 2021-2023, to ensure a common recovery of the European internal market. Add to that the various national stimulus programs and aid packages, as well as the nearly unlimited bond purchases by the European Central Bank, which currently supply countries and companies with cheap money.

nice and Brussels: duration of the loops of the EU

The duration of the Brussels summit has provided for a record. He was probably, next to the EU summit of nice in 2000, the longest Marathon, the head of state and government ever have traveled. "I am satisfied", said German Chancellor Angela Merkel, the first great mediation success of the German presidency of the EU. "Extraordinary events and the pandemic, which has reached us all, is exceptional methods require. It took me an exceptionally long time. Only our predecessors in nice, still needed a few minutes longer. So it was told to us. I don't have it reconsidered."

setting up the Fund, and the budget must now be approved by the European Parliament and all 27 member States have ratified it.

author: Bernd Riegert

*The post "EU agrees financial package against Corona-crisis" published by Deutsche Welle. Contact with the executives here.

Deutsche Welle
Updated Date: 21 July 2020, 04:26

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