Von der Leyen, President of the European Commission, says in an interview with the German newspaper Handelsblatt that she thinks that enough collateral has been built in to ensure that all Member States receiving reconstruction grants will meet the requirement for reform.
For example, she points out that “aid is paid in installments, depending on whether milestones have been reached in investment and reforms”. The Netherlands would prefer to see that subsidies are not provided, but loans, especially when it comes to countries in Southern Europe.
The package is worth EUR 750 billion. Two thirds of this is now provided as a subsidy, a third as a loan.
Second summit
Von der Leyen takes into account that the special summit on this recovery plan, which is scheduled for July 17 and 18, does not lead to an agreement. She hopes that it will at least succeed before the summer break, if necessary by organizing a second summit.
“We have to continue working until the aid package has been completed. Europe urgently needs this reconstruction plan. We are in a deep crisis that we have not known since World War II,” said Von der Leyen.
Trust in Merkel
She calls it a ‘great fortune’ that Germany will be president of the European Union from 1 July. Chancellor Angela Merkel “has a tremendous European political experience.”
“That helps a lot,” says Von der Leyen. She previously held several ministerial posts under Merkel, including for Defense, and says they have a relationship of trust.
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“ Stingy Four ”
Germany and France are both in favor of donations, whereby the emergency support does not have to be repaid. The Netherlands, Austria, Sweden and Denmark are opposed to this.
Moreover, the so-called ‘miserly four’ only want to support badly hit EU countries for the next two years. The four countries came up with their own plan in which they advocate setting up a temporary, one-off emergency fund. Badly hit EU countries can apply for a loan from this fund for a maximum of two years to overcome the corona crisis.
Submit your own plan
Concrete amounts are not yet mentioned in the proposal. First, they want the European Commission to map out exactly how much money is needed for recovery. Affected countries that want money have to come up with a recovery plan themselves.
Nor do the four countries want to contribute any extra money to the EU’s multi-annual budget. They want this budget to continue for seven years and for the two-year recovery fund to temporarily run parallel to it.
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