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Merkel and Macron want 500 billion euros for the reconstruction of Europe

Corona economic crisis

According to Chancellor Angela Merkel, Germany and France are striving for an EU reconstruction fund with a volume of EUR 500 billion.

German Chancellor Angela Merkel and her French counterpart Emmanuel Macron.

Keystone

  • Germany and France have agreed on an EU reconstruction plan.
  • The reconstruction fund is said to have a volume of EUR 500 billion.
  • All 27 states must approve the program.

Germany and France want to boost the economy after the dramatic Corona economic crisis with a European billion euro program. Five key points from Monday’s proposal:

• The scope of the reconstruction program should be EUR 500 billion for the first years of the next seven-year EU budget.

• The EU Commission should raise the 500 billion euros as debt on the capital market. The EU countries would have to give guarantees in the next multi-annual EU financial framework.

• Within the EU budget, the money is to be given primarily to countries in crisis, as donations and not as loans.

• Debt incurred at EU level should be repaid from the EU budget over a period of around 20 years.

• All 27 EU countries would have to unanimously approve such a program. The expansion of the budgetary framework – in technical jargon: raising the own funds ceiling – must also be ratified in all EU countries, in Germany by the Bundestag.

(SDA)

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