Europe fails to agree on coronavirus recovery dealChristian Fernsby ▼ | April 8, 2020
EU finance ministers failed to secure an economic recovery deal to manage the fallout of the coronavirus pandemic, Eurogroup chief Mario Centeno said in a tweet.
Chief Mario Centeno
Topics: Europe coronavirus
"I suspended the Eurogroup and [will] continue tomorrow, Thursday.
"My goal remains: A strong EU safety net against fallout of COVID-19 … and commitment to a sizeable recovery plan."
Eurozone countries are largely split along a north-south divide.
Italy and Spain have spearheaded efforts to collectively guarantee debt within the eurozone in the form of so-called coronabonds.
But that proposal, which could easily raise hundreds of billions of euros, has been outright rejected by Germany and the Netherlands.
Instead, Germany — Europe's economic powerhouse — has proposed using the crisis instrument known as the European Stability Mechanism (ESM) to extend credit to hard-hit countries.
However, since its inception, the ESM has required hard commitments to extensive economic and financial reform.
Although the German government has called for easing those conditions, it is unclear how far they're willing to go. ■