The Limited Times

Now you can see non-English news...

Coronavirus: the 27 countries of the Eurogroup agree on a common response

2020-04-09T21:54:31.445Z


Bruno Le Maire welcomed an “excellent agreement”. Several decisive points remain pending, starting with the "coronabonds".


The negotiations started from afar. They were carried out in funny circumstances - confinement obliges - but the 27 countries of the Eurogroup announced Thursday evening to have sealed an agreement in order to bring a common response to the crisis of the coronavirus. The exchanges were however tense, after a first unsuccessful meeting, Tuesday.

Evidence of some relief, the spokesperson for the president of the Eurogroup went there with his little tweet after the negotiations: "The meeting ended with the applause of the ministers", he said. published Thursday early evening.

Bruno Le Maire, who was responsible for defending the French position of his offices in Bercy, was satisfied with the conclusion of an "excellent agreement".

The question of "coronabonds" not settled

In detail, the 27 member countries of the Eurogroup agreed on an envelope of 500 billion euros available immediately. A budget which could still be supplemented by a stimulus fund whose outlines still need to be specified.

Three levers could be used in response to the crisis: up to 240 billion euros in loans from the euro zone relief fund, a guarantee fund of 200 billion euros for businesses. The remaining 100 billion will be used to support short-time working.

Since negotiations broke down on Tuesday, tension has escalated. The member states criticized the Netherlands, supported by Austria, Sweden and Denmark, for preventing any agreement by blocking the activation of the European Stability Mechanism (ESM). The Hague intended to condition the loans that this euro zone relief fund could grant to economic reforms. A positioning deemed "counterproductive" and "incomprehensible" by the French presidency.

Political Newsletter

Every day, political news seen by Le Parisien

I'm registering

Your email address is collected by Le Parisien to allow you to receive our news and commercial offers. Find out more

The conclusion of an agreement was essential from a political point of view, whereas by the very admission of the International Monetary Fund, the continent is going through its most serious crisis since 1929. It does not conceal real dissensions, however. The thorny issue of "coronabonds", demanded by the countries hardest hit by the crisis, such as Italy, Spain or France, has not been arbitrated. The latter are calling for the establishment of a European recovery plan financed by common debt. This pooling of debts remains to date absolutely unthinkable for Germany and the Netherlands. Continent hardest hit by the coronavirus epidemic, Europe is also facing its political weaknesses, perhaps more flagrant than ever.

Source: leparis

All news articles on 2020-04-09

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.