THE QUESTION. Angela Merkel and Emmanuel Macron presented, Monday, May 18, a "Franco-German initiative" to support the European economy hit by the coronavirus crisis. Main proposal: a recovery fund with 500 billion euros. If the proposal is adopted by the 27, which is not a given, this envelope would not be loaned to the Member States but given, in the form of subsidies to regions and sectors in difficulty. Where will this windfall come from? It will be borrowed, by the European Union itself. The idea of a mutualized debt, which Germany has rejected so far, has thus emerged.
Read also: How Macron rallied Merkel to the idea of European financial solidarity
If Europe - in this case the European Commission - borrows on the financial markets, even if it benefits from better rates than a single State, especially the most fragile like Italy, Spain or Greece, it will it will be necessary to reimburse these 500 billion. Hence the legitimate question, raised by several political figures in France:
This article is for subscribers only. You still have 75% to discover.
Subscribe: € 1 the first month
cancellable at any time
Enter your emailAlready subscribed? Log in