According to the newspaper El País,the Commission disclosed a proposal of a Recovery Plan of 1.6 trillion euros, financed by increasing the EU budget with countries’ contributions going up to 1.9% of EU GDP in 2022! To do transfers to countries and not loans that’s the best path
It is also the cleanest and quickest way to do it. After 2022, the size of countries’ contributions would have to stay high enough for the repayment of the Commission’s bonds issued. No need to issue perpetuals that the ECB could likely not buy. elpais.com/economia/2020-…
According to the news, Spain and France are already strongly supporting the proposal. Other countries will follow. The newspaper even reports a sort of approximation of Germany to French positions. This is within the Treaty, uses European Institutions and is not like Eurobonds /3
If this is confirmed, tomorrow’s EU Council just became a more momentous meeting. As the founder Jean Monnet said :” Men only act on a state of need and only recognise the need in moments of crisis” I am sure Men here, accorcording to the customs of that era, means Men and women.
