Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

EU finance ministers agree coronavirus rescue deal

EU finance ministers agree coronavirus rescue deal

EU finance ministers agreed a 500-billion-euro (US$550-billion) rescue package on Thursday for European countries hit hard by the coronavirus epidemic, but put aside demands from Italy and France for pooled borrowing.
The breakthrough came after the Netherlands softened its position on the crucial question of making countries in need commit to economic reform and outside oversight in return for assistance.

The Hague blocked the talks two days earlier by insisting that Italy, or any other country in need, deliver on governance targets - which Rome saw as a shocking demand during a health crisis.

"Europe has decided and is ready to meet the gravity of the crisis," French Finance Minister Bruno Le Maire tweeted after the talks.

As a compromise, the final statement clearly states that the rescue would be specifically earmarked for costs related to the Covid-19 crisis, which has killed more than 65,000 people in Europe.

The ministers, however, set to one side a proposal from Italy, Spain, and France for a joint borrowing instrument, sometimes dubbed a "coronabond", that would have raised money towards a recovery after the outbreak.

Germany, the EU's most powerful member, has refused the pooled debt proposal and ministers agreed only to "explore" the idea under the direction of EU leaders, who are set to meet later in the month.

The package agreed is worth about 500 billion euros (US$546 billion), short of what many observers believe is necessary to restart the European economy when the health crisis recedes.

Data indicate that the economy across the continent is already in a historic meltdown, with everyday life paralysed to fight the spread of the virus.

Despite 19 EU countries sharing a common currency, member states have reacted unilaterally to save their economies, giving richer countries such as Germany a big advantage over those with less spending power.

The main component of the rescue plan involves the European Stability Mechanism, the EU's bailout fund which would make 240 billion euros available to guarantee spending by indebted countries under pressure.

Italy and Spain had the backing of the majority of member states to keep the conditions for tapping the ESM to an absolute minimum, but the Netherlands fought hard for something tougher.

Putting conditions on support is seen as a humiliation in Rome and Madrid, evoking bad memories of the eurozone debt crisis when auditors from Brussels dictated policy to bailed out Greece, Portugal and Ireland.

But the mutualisation of debts was a bridge too far for Berlin and The Hague, which refuse to take on joint loans with highly indebted states such as Italy, France or Spain which they consider too lax in their public spending.

Repeating her well-known position, German Chancellor Angela Merkel on Thursday firmly rejected the notion of pooled debt in Europe.

"But there are so many other ways to show solidarity and I think we can find good solutions here," she added.

In addition to the eurozone rescue fund, the EU ministers agreed 200 billion euros in guarantees from the European Investment Bank (EIB) and a European Commission project for national short-time working schemes.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×