There is an agreement between the nineteen euro countries, united in the Eurogroup, on a support package for the countries hardest hit by the corona crisis. The Netherlands and Italy in particular have been on collision course in recent weeks.
This was reported on Twitter by Minister of Finance Wopke Hoekstra on Thursday evening.
Several countries report that the total is a package of 500 billion euros.
The Eurogroup met via a video connection, the agreement was concluded fairly quickly.
According to Hoekstra, the agreement means that countries can make use of the European emergency fund ESM. This can initially be unconditional for medical costs, if money is also needed to stimulate the economy, then conditions do apply.
In recent days, that was the point of contention between Italy and the Netherlands in particular. Hoekstra insisted that money should not simply be borrowed from a fund that is partly financed with tax money from all euro countries. That was never the intention when the ESM was set up in 2012 during the euro crisis. The Italians saw this as a lack of solidarity.
Italy and Spain have been hardest hit by the corona virus and were not too well economically even before the crisis.
The Eurobonds, the joint issuance of debt securities that the countries also disagreed on, has been put off the table, Hoekstra reports.
Hoekstra: ‘Wise agreement made’
Hoekstra also reports that there is agreement on the contribution of the European Investment Bank, which previously announced that it would release EUR 40 billion. Money is also being released to help companies keep their people employed.
He also touches on the yet to be established corona fund to which countries can voluntarily contribute for medical aid. The Netherlands has already pledged 1 billion euros. “We have made a sensible agreement,” said Hoekstra.
Seemed to be a long night
For a moment it seemed to be a difficult evening. The nineteen finance ministers did not reach a solution on Tuesday after 4 pm, so that further talks were held on Thursday.
The meeting started 4.5 hours later than planned, as folds were smoothed out in private. Quite soon after, all nineteen euro countries agreed.
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