The author of L’Opinion, Rafael Legendre, spoke about the initiative of France and Germany to restore the European economy, comparing it with electric shocks and noting that the first two eurozone economies for the first time agreed on “common debt instruments”.
According to Rambler, on May 18, German Chancellor Angela Merkel and French President Emmanuel Macron presented a program for the economic recovery of the EU countries after the coronavirus pandemic. Its volume is 500 billion euros. The money will be received in the form of loans in global financial markets under the guarantees of the European Union.
These funds will be paid for years to affected EU countries in the form of non-repayable tranches. It is planned to compensate them for 20 years from the budget of the European Union.
Legendre notes that loans will be available from 2021, and they will have to be returned after 2027.
According to him, we are talking about unprecedented budget transfers and a 30 percent increase in European assistance programs in the restoration of industries and regions.
The author of the material drew attention to the fact that 500 billion euros will be added to 540 billion loans, which will be available from June. And this is not all support, in general, Europe sends more than a trillion euros, this amount is superimposed on measures taken at the state level that have reached the level of three percent of European GDP.
However, the initiative of France and Germany should first get the support of the European Commission and the parliaments of the 27 member countries.
According to Legendre, if this measure works, then a budgetary union that the EU lacks can follow.