![]() It would not mean governments have to pay more to the EU, only that they would be ready to do so, if a loan from the Commission to a government was not repaid in time.ĮU leaders will discuss this option on April 23, although they are unlikely to make a decision immediately.īut France and Germany, the most powerful EU countries, seem open to the idea. GNI is the EU's preferred measure of economic output. This could be done by temporarily raising the maximum limit of EU gross national income set for the EU budget's "own resources" to 2% from 1.23%. The scheme, which would provide around 2 to 4 trillion euros for the recovery over two to four years, would depend on EU governments providing implicit guarantees. JOINT BORROWING USING THE EU'S LONG-TERM BUDGETĪ more likely option, proposed by EU Budget Commissioner Johannes Hahn, is that borrowing for the recovery be done by the executive European Commission, which has a triple-A credit rating, against the security of the next EU long-term budget. Even though the fund's borrowing would be limited in scope and only for the purpose of getting Europe's economy going again, joint debt remains legally or politically unacceptable for Germany, the Netherlands, Finland and Austria. The main obstacle, however, is political. Some officials have pointed out that setting up such an institution, getting a credit rating and marketing its bonds would take more time than the EU realistically has to start supporting a recovery. Paris did not give any technical details of how the fund might be set up, what its capital would be or whether the liability of its members would joint and several. ![]() After borrowing on the market, it would lend to governments so that all EU members can benefit from a low and equal funding costs. Marshall Plan for Europe after World War II.įrance has proposed a Recovery Fund of around 3% of EU gross domestic product - about 420 billion euros - financed through joint debt issuance. With such output loss, European politicians compare the task of bringing the economy back on track to the U.S. ![]() The International Monetary Fund expects the output of the 19 countries that share the euro to contract by 7.5% this year rather than grow 1.2% as forecast in February, before the pandemic triggered lockdowns in most EU countries. The issue is highly divisive because it concerns European solidarity in a crisis - member countries' willingness to share costs and ensure all have an equal chance to recover. Social gatherings in the home have also been limited to groups of four.EU leaders will hold talks on April 23. and non-essential retail shops and services shuttered by 6 p.m. The lockdown, which is set to last for at least three weeks, will see restaurants, bars and essential shops closing by 8 p.m. The protests erupted after the Netherlands became the first western European nation to impose a partial lockdown since the summer as Covid cases soared across the country, reaching record numbers in recent days, with Thursday seeing 23,000 new infections recorded in a single day. An officer points at a burned car after violence erupted at a protest against the partial Covid lockdown in the Netherlands on Saturday. Several arrests had been made, police said. Describing the scenes as "an orgy of violence," he added that “people were injured,” after officers "shot at protesters," although he could not provide information on the extent of their injuries.Īt least seven people had been injured in the clashes, police said in a statement on Twitter, which added that officers had also been injured in the clashes.
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