Angela Merkel said that the European Commission would have to raise funds on the market “which we would then spend in the short term, but payback over the long term”. She also emphasised that the funds would not be distributed as loans.
After long talks, Germany and France have joined forces to push for a €500bn EU recovery fund. The fund‘s target is, according to mentioned country’s leaders, joint response to the EU’s worst-ever economic slump by boosting the effort to create a co-ordinated European fiscal response to the coronavirus pandemic.
The Franco-German declaration said the recovery fund “will be based on a clear commitment of member states to follow sound economic policies and an ambitious reform agenda”.
The European Commission would raise borrowing on capital markets which will be used to support EU spending rather than loans to national governments.
Another main point during their talks was reaffirmation the EU’s “Green Deal”, which include acceleration of digitalisation, and pledged to reinforce European “economic and industrial resilience and sovereignty” by diversifying supply chains, currently heavily dependent on Chinese production.
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