"This fund must be of sufficient size, target the most affected sectors and geographic parts of Europe, and be dedicated to tackling this unprecedented crisis," said the leaders of the 27 EU countries. in a press release after their meeting by videoconference on Thursday.
EU heads of government have asked European Commission officials to present detailed proposals "urgently" which will include the relationship between the stimulus fund and the EU budget for 2021-2027, they said. added.
The EU plans to increase its budget from around 1.2% of GDP to 2% of GDP, then use these additional funds as collateral to borrow at low rates on the financial markets.
Asked by journalists about the amounts that could be collected, the President of the European Commission, Ursula von der Leyen, said: "We have to examine this in depth ... but we are not talking about billions[s]we are talking about trillions[s]. "
"There are reasons to be certain that, even if we do not get as comprehensive a response as we would like on the whole, the European budgetary response to this crisis could end up being important", commented Kit Juckes , Societe Generale strategist. in a research note on Friday.
The International Monetary Fund expects EU GDP to drop 7% this year, and recent data suggests that economic activity in March and April may have dropped from 20% to 30%.
Speaking after the videoconference, French President Emmanuel Macron said there was a consensus among EU states on the need for a "strong and coordinated response [worth] about 5 to 10 [percentage] GDP points. "
Differences remain as to how the fund should operate, particularly if it is to grant loans or grants to the hardest hit countries such as Italy and Spain. Subsidies, or direct money transfers, would imply some sharing of the debt that states like the Netherlands, Austria and Germany have long resisted.
However, EU leaders have tried to show unity.
"The common market today benefits some of the most productive states or regions in Europe because they produce goods that they can sell in other regions. If we abandon these regions, if we abandon part of Europe , all of Europe will fall, "Macron told me.
"It is important because it is a necessary and urgent tool. It is absolutely necessary that Italy is the first online to request it," he said in a short video statement.
"If we cannot do this today, I tell you that the populists will win ... today, tomorrow, the next day, in Italy, in Spain, perhaps in France and elsewhere," he said. he told the Financial Times.
James Frater, Anna Stewart, Charles Riley, Mia Alberti and Pierre Bairin contributed to this article. Source link