RSS   Newsletter   Contact   Advertise with us

Merkel about coronavirus recovery fund: Germany and France must agree

Christian Fernsby ▼ | July 3, 2020
German Chancellor Angela Merkel on Thursday pushed for an agreement on the multi-billion-euro recovery fund to cope with the economic difficulties caused by the coronavirus pandemic.
Angela Merkel
Chancellor   Angela Merkel
A large part of the fund, deemed vital for Europe's economic stability, would be in grants for European Union (EU) member states, hence sparking controversy which is feared to lead to lengthy negotiations.

Topics: Merkel Germany France

The 750-billion-euro (over 840 billion U.S. dollars) rescue package proposed by the European Commission has prompted divisions among EU governments as the Netherlands, Austria, Sweden and Denmark the so-called Frugal Four -insist the recovery fund can only be based on loans that need to be paid back later.

"If Germany and France agree with each other, other EU nations might not all agree. If Germany and France disagree with each other, it's a big impact on the EU solidarity," Merkel noted.

Germany and France proposed in May a smaller fund to the tune of 500 billion euros in grants for the hard-hit countries in EU.

Some insist allocating the money based on the unemployment rate at pre-pandemic period while others recommend taking into account the economic situation during the pandemic.

According to the German Press Agency (dpa), an EU summit on July 17 is set to decide on the recovery fund.