A powerful array of EU countries including Germany is lining up against a key element of the post-coronavirus economic recovery plan floated by European Commission President Ursula von der Leyen
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After commissioners held a debate on recovery financing on Wednesday, Commission Vice President Věra Jourová affirmed the plan would include "temporarily boosting the financial firepower of the budget by increasing the headroom [the ceiling on maximum contributions] and tapping financial market financing to channel extra funding to the member states."
Angelika Winzig, who leads the delegation of Austria's governing People's Party in the European Parliament, said her party supports "full solidarity" in the crisis but borrowed money has to be repaid. Commission officials insist they will find a creative compromise that is in line with EU law and that they are working hard to craft a plan that takes account of the concerns of all member countries.Ultimately, Germany's attitude to the Commission's plans will be crucial. And in Berlin, members of Chancellor Angela Merkel's Christian Democratic Union highlighted strong reservations.
"Before the EU resorts to ever new methods of financial alchemy, levers and bond constructions, we finally need clarity for what all the money is to be used for," said Rehberg. "It appears that some are only interested in putting large sums of money on display."
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