Sunday, Aug 01

EU leaders to gather to discuss corona recovery plan

Two weeks ago, eurozone finance ministers managed to strike a deal on a €540-billion financial plan to immediately support workers, businesses and healthcare systems.
23.04.2020 - 16:52

EU countries have on Thursday begun discussing a long-term economic recovery plan from the novel coronavirus pandemic in a videoconference on the bloc's 2021-2027 budget.

In a fourth meeting in seven weeks, EU heads of states and government virtually came together to discuss coronavirus restrictions.

RECOVERY PLAN WILL BE ESTABLISHED

The prime ministers and the presidents are to set the main guidelines for a recovery plan to help the European economy emerge from severe damage caused by the outbreak.

Mediterranean countries have been insisting over the past month on launching an EU-wide reconstruction program financed by all members. Other countries have refused the proposal in fear of ending up being permanently responsible for financing the highly indebted southern countries.

Reports have emerged that a recovery fund will be linked to the next seven-year budget in a European Commission proposal.

A possible scenario is to use the so-called solidarity clause of the EU Treaty to allow the European Commission to take a loan from financial markets to be redistributed between member states. It is yet unclear whether the recovery support would take the form of a grant or loan to be repaid later.