European Union leaders will move on Thursday towards joint financing of a recovery after the coronavirus pandemic by asking the European Commission to propose a fund sufficiently big to target the most affected sectors and regions.
FILE PHOTO: A man wearing a face mask walks past the European Commission headquarters as the spread of coronavirus disease continues in Brussels, Belgium April 9, 2020. REUTERS/Yves Herman/File Photo
A more even recovery, thanks to the joint financing, would help preserve the EU’s cherished single market of 450 million people and keep at bay eurosceptic parties trying to capitalise on popular resentment of EU economic inequalities. The sums floated in proposals ahead of the summit are huge, ranging from 1 trillion to several trillion euros. But it is the method of raising the funds and whether they should be disbursed as loans or grants that are the most contentious issues.
A possible compromise could involve using both the EU’s next long-term budget for 2021 to 2027, which would disburse grants, and the Recovery Fund, which would operate on the basis of loans. “The Commission proposal should clarify the link with the MFF, which will in any event be at the heart of the EU’s contribution to recovery and will need to be adjusted to deal with the current crisis and its aftermath,” Michel said.
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