European Union: a recovery plan of 500 billion euros at the initiative of E. Macron and A. Merkel

Emmanuel Macron and Angela Merkel are joining forces to bring the European Union (EU) out of the economic crisis caused by the Covid-19 pandemic. On May 18, the President of the French Republic and the German Chancellor presented a recovery plan of 500 billion euros. Its particularity: it mutualizes the European debt by proposing that the support be financed by loans from the Commission “on behalf of the EU” on the stairs.

“To support a sustainable recovery that restores and strengthens growth in the EU, Germany and France support the creation of an ambitious, temporary and targeted Recovery Fund” in the context of the next EU budget, can we read in government press release. “Funding from the Recovery Fund will be targeted to the challenges associated with the pandemic and its impact. This will be an exceptional supplement, which will be linked to a binding reimbursement plan beyond the next multiannual financial framework on the EU budget”it is specified.

Towards a negotiation at 27

The money will be donated to European countries and “to the most affected sectors and regions” in the form of “budgetary expenditure”. “These 500 billion will not be reimbursed by the beneficiaries of those who will use this moneyassured Emmanuel Macron in a joint press conference with Angela Merkelas reported The gallerywhich echoes AFP. These will not be loans but endowments”. “France and Germany position themselves in favor of solidarity”added the Chancellor.

From now on, the two leaders will have to convince all the Member States of the European Union. Apart from the recovery fund”for solidarity and growth”the Franco-German couple proposes to strengthen the strategic health sovereignty of each by a “EU health strategy”to accelerate the ecological and digital transitions, and, finally, to increase the resilience as well as the economic and industrial sovereignty of the Union.