Skip to content
  • ABOUT
  • WRITING
  • SPEAKING
  • ADVOCACY
  • BLOG
  • CONTACT
  • Twitter
  • Instagram
  • Facebook
  • LinkedIn

ALBERTO ALEMANNO

Primary Menu
  • Europe
  • Democracy
  • Advocacy & Lobbying
  • Health
  • Risk Regulation

EU members clash over pandemic economic rescue package

THE GUARDIAN - Daniel Boffey - 10/04/20

France and Netherlands at odds on finance ministers’ €500bn compromise

France and the Netherlands have openly clashed over the meaning of a messy compromise struck by finance ministers which has unlocked a €500bn (£438bn) pandemic rescue package for European economies but left major issues unresolved.

Hours after a breakthrough was secured late on Thursday evening to allow immediate support for businesses and healthcare systems, it became clear on Friday that there remained bitter divisions within the EU over the longer-term task of rebuilding the European economy.

The finance ministers have agreed to make available to countries hardest hit by the coronavirus pandemic some €240bn of credit lines via the European stability mechanism, a bailout fund for struggling member states.

There will be no conditions attached where the spending is related to the immediate crisis. But normal rules on the need for balanced budgets will apply where the cash is spent on the wider economy.

On the toxic issue of the so-called coronabonds, under which the EU member states would borrow on the international financial markets on the same terms and share liability, the agreed text only referred to governments working on “innovative financial instruments, consistent with EU treaties” to create a rescue fund.

France’s finance minister, Bruno le Maire, insisted on Friday that this would ultimately equate to the joint issuance of debt, despite the opposition of the Netherlands, Austria, Finland and Germany.

Le Maire said: “I have a firm conviction that the fund will see the light of day and there will be debt raised jointly in a form that remains to be determined.

“It means what it means. The only instrument that does not yet exist in European financing is joint debt.”

Wopke Hoekstra, the Dutch finance minister, said he was “very satisfied” with the outcome after 16 hours of talks, adding of coronabonds that “there won’t be any”. He told Dutch TV stations: “Sometimes you have to put your foot down.”

The deal will now be put to the leaders of the 27 member states, with little apparent room for compromise on the longer-term economic response to the coronavirus. For the Italian government, the pandemic has become a test of the strength of EU solidarity.

Professor Alberto Alemanno, from the HEC Paris Business School, said:

“We can expect national leaders to offer very different interrogations of the agreement. Several major issues remain open and need to be hammered down, notably the rescue fund’s sourcing.”

The entire package included agreement on boosting the lending capacity of the European Investment Bank and a new €100bn scheme proposed by the European Commission to keep funding employee salaries if they are put on reduced hours. All of the measures will need to be signed off by 27 heads of state and government.

Charles Michel, the former prime minister of Belgium, who is now president of the European Council, the EU decision-making body comprised of heads of member states, said he would hold an e-summit with leaders on 23 April.

He said: “The agreement of the Eurogroup is a significant breakthrough. More than half a trillion euros are now available to shield European Union countries, workers and businesses. With this unparalleled package, we shoulder the burden of the crisis together. This compromise is aimed at quick targeted relief… It is time to lay the ground for a robust economic recovery.”

  • Share on Facebook
  • Share on Twitter
  • Share on Linkedin
  • Share on Tumblr
  • Share on Reddit

Tags: The Guardian

Continue Reading

Previous Coronavirus : « Si vous pensez que l’Union n’en fait pas assez, tournez-vous plutôt vers les capitales européennes »
Next We lived the European dream. Will any politician stand up for open borders?

RSS READ ME IN THE GUARDIAN

  • We lived the European dream. Will any politician stand up for open borders? 22/05/2020
  • Europe doesn't have to be so helpless in this crisis 26/03/2020
  • The EU won’t fix its democratic deficit with another top-down ‘conference’ | Alberto Alemanno 21/01/2020
  • There are 17 million mobile EU citizens. We deserve a political voice | Alberto Alemanno 01/05/2019

RSS READ ME IN THE POLITICO

  • The Qatar scandal shows how the EU has a corruption problem
  • Once again, FIFA has sold its own rules and values for money
  • The end of Euro-bashing
  • Facebook vs. the EU
  • The real winner of the Italy-France dispute is Europe

PODCAST: CITIZEN LOBBYIST

EP 9 I What is European Racism? &How do we fight it?
byThe Good Lobby

This episode of Citizen Lobbyist investigates racism in Europe.

After the assassination of George Floyd, we have seen a new wave of protests and indignation not only in the US, but also in Europe. While systemic racism may be harder to spot in Europe than in the United States, the roots of racism are the same on both continents. Systemic discrimination is not only present but also perpetrated by the same institutions that should fight to prevent it.

Together with the Open Society European Policy Institute – OSEPI – we gathered four amazing female activists from different backgrounds:

Layla @Azzuzi – Collective Against Islamophobia in Belgium
Dijana Pavlovic – European Roma Institute for Arts and Culture
Violeta Naydenova – Senior Policy Analyst on Roma and Anti-discrimination at Osepi
Wetsi Mpoma – Bamko-Cran: Centre for Reflection and Action on Racism

Hey, it’s me Fiorella! :
I would love to have a 60 min discussion of the topics we discussed on Clubhouse.
If you like the idea, just send me a message and we will make it happen.

You can DM me on Instagram: @flowlav
Or send me an email at: [email protected]
Clubhouse: @flowlav

EP 9 I What is European Racism? &How do we fight it?
EP 9 I What is European Racism? &How do we fight it?
04/02/2021
The Good Lobby
EP 8 I How should lobbying be regulated?
02/12/2020
The Good Lobby
Ep7 I Why civil society matters in a post Covid-19 world
13/06/2020
The Good Lobby
Ep 6 I Why academics must work for society
20/05/2020
The Good Lobby
Ep 5 I Why people work for free? The PRO BONO phenomenon
08/05/2020
The Good Lobby
Ep 4 I The future of digital activism
24/04/2020
The Good Lobby
Ep 3 I The business of lobbying – New scenarios during the Covid-19 outbreak
09/04/2020
The Good Lobby
Ep. 2 I European Citizens' Initiative: lobbying for citizens without borders
24/03/2020
The Good Lobby
Ep. 1 I Lobbying. What is it? Can Citizens do it?
21/02/2020
The Good Lobby
Ep. 0 I Intro
27/01/2020
The Good Lobby
Search Results placeholder

SEARCH BY TAG

Alessandro Chiocchetti Angela Merkel Ashoka Bloomberg Brexit Citizen Lobbying COVID-19 Davos democracy Didier Reynders ethics EU elections Europe European Commission European Parliament Eva Kaili Forbes France Future of Europe Italy Le Monde lobbying Macron Mario Draghi Meloni Neelie Kroes Netherlands Olaf Scholz orban participation Poland policymaking Politico Qatar Qatargate Renzi Russia scotland The Good Lobby The Guardian Uber Files Ukraine vaccine Von der Leyen World Cup

ARCHIVES

  • Contact
  • Privacy Policy
  • Twitter
  • Instagram
  • Facebook
  • LinkedIn
Copyright © Alberto Alemanno - All rights reserved. 2020–2023 | Designed by Mila Branders
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookies PolicyACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT