For the Federal Minister of Finance, the Corona reconstruction fund is a step forward that cannot be turned back: The EU is taking on joint debts for the first time, says Scholz. Fierce criticism comes from the Union.
Berlin (dpa) - In the opinion of Finance Minister Olaf Scholz, the joint borrowing agreed in Europe in the course of the Corona crisis is not a crisis-related flash in the pan.
"The reconstruction fund is a real step forward for Germany and Europe that cannot be turned back," said the SPD candidate for chancellor in the newspapers of the Funke media group. The EU is taking on joint debts for the first time, using them specifically against the crisis and undertaking to start repaying soon: "All of these are profound changes, perhaps the biggest changes since the introduction of the euro."
The statements met with violent opposition in the CDU. "Mr. Scholz is always more of the SPD's candidate for chancellor than the responsible federal finance minister," said Union budget expert Eckhardt Rehberg of the "Frankfurter Allgemeine Zeitung". "With us there are no common European debts and no Eurobonds either." Scholz's move was not coordinated with the Union faction. "This is all the more astonishing as the Bundestag will have to pass the equity decision to finance the European reconstruction fund in the coming weeks."
A month ago, the heads of state and government of the 27 member countries agreed on a corona crisis program worth 750 billion euros. 390 billion euros are to be granted as direct grants and 360 billion euros as loans. In addition, the EU Commission will for the first time take on European debts on the financial markets, which are to be repaid by 2058.
For years Germany had resisted joint borrowing and financial injections to over-indebted countries such as Italy and Spain. In view of the corona pandemic, Chancellor Angela Merkel (CDU) and Finance Minister Scholz then swung course in close coordination with France.
Scholz emphasized that now it will inevitably have to be discussed about joint EU revenues, which could improve the European Union's ability to act. "That can quickly become relevant. If the rescue fund has to be repaid, it shouldn't be at the expense of the normal EU budget." That is why it makes sense to have your own EU income, for example through emissions trading in shipping and air traffic, in the taxation of financial transactions or digital platforms.
In order to be able to act faster in future crises and challenges, the finance minister called for a reform of the voting rules in the EU councils. "The EU needs the opportunity to act together. But this requires qualified majority decisions in foreign, fiscal or tax policy instead of the need for unanimity in the EU councils."
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Information on the development plan for Europe
Results of the European Council on July 17th and 18th, 2020