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Germany's Angela Merkel and France's Emmanuel Macron have propesed a €500 billion European coronavirus reconstruction plan. The aim is the recovery fund that should give grants, not loans to EU member states.

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Merkel Highlights

  • We need a European recovery fund, Germany and France discussed this today
  • We must act in the European way so that we all get out of this crisis well
  • Goal is that Europe comes out of crisis stronger
  • The recovery fund that should give grants, not loans to member states Fund must be in line with EU law
  • There is a possibility of EU treaty changes in the longer run, but now it's about agreeing on a short-term measures
  • It is crucial that EU bonds will be paid back via EU budget, national parliaments will have to give green light

Macron Highlights

  • Call for EU public health sovereignty, say objective should be to develop vaccine within EU over the short term
  • Jointly called for increase of European budget over 1st few years
  • Call for ambitious, temporary and targeted recovery fund within MFF Propose to authorize
  • European commission to find recovery by borrowing through financial markets in the EU's name
  • Recovery fund should be given €500 billion for EU grants to go to hardest hit sectors and regions
  • Recovery fund will be integrated in decision on EU's own resources with clearly identified volume and expiry date
  • A quick EU agreement on MFF, recovery fund is necessary
  • This recovery plan will be supported by commitments from member states to undertake healthy economic policies and reform program

From The TradersCommunity News Desk

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