The #Eurogroup has actually decided on something. And we should take a second to cherish that moment. In sum: We get an ESM credit line nobody needs; an EU loans scheme with no real strings attached; and an opening for burden sharing.
1/ First on the ESM: There will be a credit line to cover "direct and indirect" healthcare costs. That is obviously a joke as in the grand scheme of things, health care costs won't matter much. This will never be used. But now the ESM is symbolically part of the solution.
2/ There will be an EU program to give cheap loans to member states without conditionality called SURE. What matters: EU will be allowed to borrow in the markets and hand the funds to member states. This is an important political step that seemed totally out of reach 4 weeks ago.
3/ There is agreement to set up a "recovery fund". This means there is now agreement that the package so far on the table (EIB/ESM/SURE) will not be enough and we need some form of burden sharing. This is very good news. The language is Brussels poetry with some important clues:
4/ Size: "Commensurate with the extraordinary costs of the crisis" --> We'll need more than is currently in the budget
Principles: Solidarity with most affected MS and fund "should help spread [costs] over time" --> 🧐
Structure: Through EU budget --> No new institution
Principles: Solidarity with most affected MS and fund "should help spread [costs] over time" --> 🧐
Structure: Through EU budget --> No new institution
5/ But most importantly, ministers finally ask their bosses for guidance on the hot topics: Financing, the use of "innovative financial instruments" (again a certain type of financial asset comes to mind), and the legal basis. Leaders will finally need to take a stance here.
6/ All in all, I find this a very reasonable outcome. #Eurogroup for once mildly beating expectations. Now #EUCO has to live up to the task too and provide solid guidance for ministers to do their job and hash out the details of the recovery fund. Still a long way to go.
