The presidents of the European Commission and the Budget Committee of the European Parliament have responded positively to the Franco-German compromise proposal for a 500 billion euro corona recovery fund. However, the proposal from Macron and Merkel will not be blindly copied verbatim.
A European recovery fund is urgently needed to prevent a severe recession, several Members of the European Parliament said during an informal meeting with European journalists. During a webinar, MEPs welcomed the recent Franco-German proposal for a 500 billion euro recovery fund. They also reiterated the EP position on such a recovery plan, emphasizing that it should be part of regular EU procedures and not some new, separate kitty.
Johan Van Overtveldt (ECR), the Belgian chair of the EP Budget Committee, warned about the deteriorating economic situation and urged swift action: “Covid-19 is still a major health crisis, but we realize it is slowly turning into a severe recession. If we do not halt the recession as soon as possible, we could face what I call a new financial hurricane,” said Van Overvelt.
The President of the European Commission, Ursula von der Leyen, will present a new proposal for both a multiannual budget and a corona recovery plan during a debate in the European Parliament on Wednesday afternoon, May 27. The European Commission will not copy the Franco-German support plan of 500 billion euros. The new EU multiannual budget with an associated European recovery fund will have to be a balance of loans, subsidies, and grants, Brussels emphasizes.
French President Emmanuel Macron and German Chancellor Angela Merkel spoke on Monday about “a short-term plan” to help business sectors and regions recover. The Netherlands “takes good note” of the Franco-German plan but gives no official response, awaiting the Commission proposal. It is known that The Hague opposes grants. According to Austrian Chancellor Sebastian Kurz, the position of the so-called “frugal four” countries Austria, the Netherlands, Sweden, and Denmark remains unchanged.