The decision by both countries’ governments to block a Covid recovery programme for the EU is unjustified and irresponsible
When European Union leaders finally agreed on a groundbreaking economic recovery fund in July, there was understandable euphoria and relief. The huge €750bn package allowed the European commission, for the first time, to raise funds from the open markets on behalf of member states. The money would be distributed to the countries that needed it most, as the coronavirus pandemic led to soaring debt and unemployment. Hailing the deal, the German chancellor, Angela Merkel, said at the time: “Europe has shown that it is able to break new ground in a very special situation such as this one.”
Depressingly, it seems that Ms Merkel spoke too soon. On Monday, Hungary and Poland effectively vetoed the recovery package, along with the EU’s latest seven-year budget. Unless a solution can quickly be found, the deployment of vital funding could be delayed far into 2021. As countries cope with the second Covid wave and Europe heads towards a double-dip recession, this would be disastrous and destabilising. In Italy, for example, where social unrest has broken out in cities such as Naples and Turin, the €209bn allocated from the fund represent an economic lifeline.
Continue reading…The decision by both countries’ governments to block a Covid recovery programme for the EU is unjustified and irresponsibleWhen European Union leaders finally agreed on a groundbreaking economic recovery fund in July, there was understandable euphoria and relief. The huge €750bn package allowed the European commission, for the first time, to raise funds from the open markets on behalf of member states. The money would be distributed to the countries that needed it most, as the coronavirus pandemic led to soaring debt and unemployment. Hailing the deal, the German chancellor, Angela Merkel, said at the time: “Europe has shown that it is able to break new ground in a very special situation such as this one.”Depressingly, it seems that Ms Merkel spoke too soon. On Monday, Hungary and Poland effectively vetoed the recovery package, along with the EU’s latest seven-year budget. Unless a solution can quickly be found, the deployment of vital funding could be delayed far into 2021. As countries cope with the second Covid wave and Europe heads towards a double-dip recession, this would be disastrous and destabilising. In Italy, for example, where social unrest has broken out in cities such as Naples and Turin, the €209bn allocated from the fund represent an economic lifeline. Continue reading…