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World Coronavirus: four European countries present their own economic aid plan

18:41  23 may  2020
18:41  23 may  2020 Source:   rfi.fr

Towards a "physical" European summit to negotiate the budget

 Towards a UNION-BUDGET-RELANCE-SUMMIT: Towards a "physical" European summit to negotiate the budget © Reuters / Johanna Geron TOWARDS A "PHYSICAL" EUROPEAN SUMMIT TO NEGOTIATE THE BUDGET BRUSSELS (Reuters) - EU heads of state and government could meet at face-to-face summit in coming weeks to negotiate next EU budget and plan economic recovery from the coronavirus crisis, thus suspending the removal measures imposed to contain the pandemic, said several diplomats and officials.

L'Autriche du chancelier Sebastian Kurz et trois autres pays ont présenté une contre-proposition au plan de relance proposé par la France et l'Allemagne. © REUTERS / Leonhard Foeger Chancellor Sebastian Kurz's Austria and three other countries have presented a counter-proposal to the recovery plan proposed by France and Germany .

The Netherlands, Austria, Denmark and Sweden presented their own proposal for an economic aid plan on Saturday 23 May. They want to help the European Union overcome the crisis while reaffirming their rejection of a mechanism for pooling European debt.

In their proposal, the four countries, nicknamed the "frugal" , evoke emergency aid in the form of loans, according to a proposal published by the office of Austrian Chancellor Sebastian Kurz . The latter must be punctual with favorable conditions and be granted within two years.

EU: the path full of pitfalls of the European recovery plan

 EU: the path full of pitfalls of the European recovery plan © Olivier Hoslet / Pool via REUTERS The President of the European Commission, Ursula von der Leyen, must present a recovery plan likely to bring together the Member States of the EU. The EU risks sinking in 2020 into the worst recession in its history following the Covid-19 pandemic. To deal with it, the European Commission unveiled an unprecedented recovery plan on Wednesday 27 May.

According to the proposal, the money loaned will have to be "directed towards activities that contribute the most to recovery, such as research and innovation, strengthening the health sector and a green transition". In return, “firm commitments” will be expected from the beneficiary countries concerning the implementation of reforms and compliance with the budgetary framework.

Particular attention is paid to fraud in this recovery plan. The four countries believe that it will be necessary to "protect spending against fraud" by closely involving European prosecutors and those responsible for fighting corruption.

Rejection of the Franco-German plan

Regarding the 500 billion euros plan announced by French President Emmanuel Macron and German Chancellor Angela Merkel on Monday May 18, the four "frugal" still reject the idea of ​​pooling European debt. According to them, this would allow the least disciplined and weakest European economies to benefit from cheaper financing thanks to the stronger economies of the North.

Coronavirus: Macron and Merkel propose a recovery plan of 500 billion euros

 Coronavirus: Macron and Merkel propose a recovery plan of 500 billion euros © Francois Mori / POOL / AFP The French President and the German Chancellor proposed Monday a recovery plan in Europe of 500 billion euros, opposite to the recession into which the coronavirus crisis plunged the continent. French President Emmanuel Macron and German Chancellor Angela Merkel proposed a 500 billion euro recovery plan in Europe in the face of the economic impact of coronavirus , which plunges the continent into a deep recession historical.

Read also: Coronavirus: a recovery plan which signals the return of the Franco-German couple

The four countries also refuse any “significant increase” in the EU budget, as envisaged by the Franco-German plan. Rather, they plead for a modernization of the budget and wish to save money "by redefining priorities in the areas least likely to contribute to the recovery".

On the other hand, the expenses linked to the Covid-19 could be privileged or temporarily increased. Given the gloomy economic forecasts for this year, "additional funds for the EU, however they are funded, will weigh even more heavily on national budgets," according to the four countries.

For its part, the European Commission is expected to present its own plan next week to stimulate economic recovery after the health crisis.

(With AFP)

Coronavirus: an extraordinary economic, social and health cost .
© Provided by La Tribune While the 350,000 dead mark worldwide (more than three quarters in Europe and the United States) was crossed on Wednesday, the European Union is preparing to unveil a major recovery plan today, a bet at least a billion euros to try to restart the economies of the 27 member countries. Even in countries where health systems have resisted, economic and social indicators are red.

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