EU summit, 300 billion recovery fund. Merkel opens

The anticipation is rising for the European Council scheduled for this afternoon. The European Commission makes its move and proposes to add the Recovery Fund to the next multiannual budget, a temporary fund endowed with 300 billion dollars to finance the recovery of member states. 

The commission led by Ursula Von der Leyen has drawn up a document containing the measures that will flow into the 2021-2027 budget. The package of measures, in intention, should mobilize about 2 trillion euros in order to revive the economies in crisis. According to Bloomberg, the initial resources should be 620 billion euros, just over half coming from an allocation from the European Union budget, while another 300 billion should be raised on the capital market with some form of community guarantee . 

In the Commission document it is planned to use issues of European bonds to raise resources of 320 billion on the financial markets. The amount collected will be divided in half: 50% will be used to disburse loans, the other 50% will go to finance ad hoc programmes. All in compliance with the provisions of article 122.1 according to which, "the Council, on a proposal from the Commission, may decide, in a spirit of solidarity between Member States, the measures appropriate to the economic situation, in particular if serious difficulties arise in the procurement of certain products, especially in the energy sector”.

That we are going in the direction of using the EU budget to find the resources necessary to counter the heavy economic crisis triggered by the pandemic, the openings of the chancellor confirm Angela Merkel "For Germany, recognizing itself in the European Union is part of our raison d'état," said the chancellor speaking to the Bundestag. “Europe is not Europe if we are not ready to support each other, in times of an emergency you are not to blame,” he continued. “In this crisis we also have the task of demonstrating who we want to be as Europe”.

After stressing that "at stake is the stability of Europe", Merkel asked that the 500 billion package envisaged by the Eurogroup measures be quickly available. “I hope that by 1 June this money will actually be available". 

The Chancellor also referred to the Eurobonds, and the German No seems to have become less peremptory than in the past. However, the conservative leader stressed that, if the Council decides to adopt these instruments, the decision "would have to be ratified by all parliaments and it would take years", also for the necessary modification of the Treaties.

On the contrary, what Member States need is quick and swift action. Preventive credit lines are needed for SMEs and for workers in Europe. And Germany intends to do its part: "One thing is clear - she said - we will have to be ready to make clearly higher contributions to the European budget” because Germany “can only be well if Europe is well”.