The leaders of the European Union (EU) member states are meeting virtually on Friday to forge a compromise on how a coronavirus pandemic rescue packages should be managed. This comes as the European continent faces the worst recession in history, with many member states under pressure to tackle the economic impact of the outbreak.
The leaders are expected to discuss the $825 billion rescues fund proposed by the European Commission, to cushion the member states from the effect of the pandemic. The proposed plan aims to provide aid through debt mutualization, loans, and grants.
According to the proposal by Emmanuel Macron, the French President and German Chancellor Angela Merkel, the commission will raise money on financial markets, to be repaid over decades. It would require the approval of all the European Union member states.
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However, Denmark, Netherlands, Sweden, and Austria have opposed the plan and have said that they will seek rein in spending. The group of four countries has also opposed the idea of issuing common debt that would be pooled by the EU.
Ursula von der Leyen, the President European Commission, wants to revamp the bloc’s next long-term budget plan. But she maintained that the leaders of the EU need to settle on the ambitious and balanced approach swiftly.
Charles Michel, the host of the summit, said that all the nations have the collective responsibility to act. Michel tweeted that now is the time to engage.
Meanwhile, Christine Lagarde, the head of the European Central Bank, urged the European leaders to spearhead the revival. While talking to a video conference, Lagarde said that the European economy is experiencing a dramatic fall.
Political experts have suggested many member countries have legitimate concerns, who have expressed their worries about the mutualized debt. However, there is also an agreement among member nations that the bloc needs to have a collective response to the effect of the pandemic outbreak. It is hoped that the discussions could culminate with a deal in July.
