As expected on Thursday evening, the 27 European heads of government agreed on an aid package of some 540 billion euros that should enter into force on 1 June. The big question is how the European aid fund, which is yet to be set up, to get the economies back up and running after the corona crisis, will look like.
Opinions differed on one point during the fourth consultation on the corona crisis, Prime Minister Mark Rutte said after the consultation.
Some countries prefer gifts over loans. “It shows a difference in accents between the north and the south,” said Rutte from The Hague. Just like the consultation with the other heads of government, the press conversation afterwards was via a video connection.
After the fierce discussions about the eurobonds, the joint issuance of debt securities of which the northern countries in particular do not want to know, the European aid fund is now the main topic of discussion.
But first you need to look at what exactly is needed, how much money should be in the fund and how it is financed. The European Commission will have to consider these questions in the coming weeks.
Talks about the amount of 1.5 trillion euros
There is wild speculation about the size of the recovery fund. Latvian European Commissioner Valdis Dombrovskis spoke of EUR 1,500 billion (1.5 trillion).
Rutte does not venture an amount and does not mention a ceiling. “This is not convenient from a negotiation point of view. I would rather look a bit economical when I hear amounts than to indicate upper limits.”
According to Rutte, the resentment between the Netherlands and Italy was removed after the agreement on the emergency package of the Eurogroup on 9 April. Last Monday’s mutual conversation with his Italian and Spanish colleague also helped.
But the discussion about how aid will look in the long term remains. It will only be transferred to the support fund. Many countries mainly had ideas and opinions about what this should look like, while there is still nothing on paper. That is why Rutte is satisfied that a thorough analysis has now been made by the European Commission.
“Otherwise you just keep running for instruments. At some point, they will all become party committees looking for a party,” said the prime minister.
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