EU fails to agree on economic deal
Brussels, April 8
BONE OF CONTENTION
- The main disagreements stem from differing points of view on the conditions for accessing soft loans under the eurozone rescue fund, the European Stability Mechanism (ESM)
- Member states also disagree on whether to issue mutualised debt known as corona bonds as part of a broader package to mitigate the economic recession
The European Union Economy and Finance ministers have failed to reach an agreement on a set of measures to mitigate the economic impact of the covid-19 pandemic on the worst-affected member states despite more than 16 hours of negotiation.
The Eurogroup said it would meet again on Thursday to resume talks and reach a consensus, Efe news reported.
“After 16h of discussions we came close to a deal but we are not there yet. I suspended the Eurogroup & continue tomorrow, Thursday,” Mario Centeno, president of the Eurogroup, tweeted.
“My goal remains: A strong EU safety net against the fallout of Covid-19 (to shield workers, firms & countries) and commit to a sizeable recovery plan,” the Portuguese finance minister added.
In a bid to unblock the situation, Germany and France rallied on Wednesday and presented a plan for a recovery fund based on the issuance of debt backed by guarantees from the member states.
“With Olaf Scholz, we call on all European states to be equal to the exceptional stakes and secure an ambitious deal,” French minister Bruno Le Maire said after the meeting.
The German Finance Minister echoed Le Mair’s commitment to resolving the deadlock saying: “In this difficult hour, Europe must stand together. Together with Bruno Le Maire, I therefore call on all euro countries not to refuse to solve these difficult financial questions and to enable a good compromise – for all citizens.”
A third point that remains to be agreed upon is the Commission’s proposal to establish a temporary fund to deal with rising unemployment levels under the SURE instrument which is designed to mitigate the risks of unemployment in the case of an emergency. —IANS
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