Heavily criticized for its lack of coordination and efficiency during the first months of the covid-19 coronavirus epidemic, the European Union (EU) is being relaunched by Germany and France through “contributions to be implemented very quickly.”
Angela Merkel and Emmanuel Macron indicated four priorities “to get out of the crisis”, namely the construction of a European strategic health sovereignty, the creation of a recovery fund, the acceleration of the ecological and digital transitions, and the increase in the EU’s economic and industrial sovereignty.
“The recovery fund must make a significant contribution to enable the individual countries of the European Union (EU) to react according to their needs,” said German Chancellor Angela Merkel.
The European Commission will be authorized to borrow 500 billion euros on the financial markets on behalf of the EU, whose budget spending “will increase investment, particularly in the ecological and digital transitions and in research and innovation.”
The proposal for genuine money transfers between European countries and the possibility of them borrowing together is a major development in the German stance, which is reputed to have always been reluctant to do so.
If it materializes, it will create de facto financial solidarity between EU member states, and this is already causing some political opposition. In France, some deplore a “headlong rush”, while in Germany, some fear “paying for the grasshoppers”.
Contents published on Cyceon.com do not constitute investment advice.
© Cyceon, unauthorized reproduction prohibited.