🇩🇪 and 🇫🇷 go bold: 500 billion for additional EU spending, borrowed in the markets. No loans. No wizardry. This is a big step. Now of course both sides need to go all in and convince the others to make it happen.
Thread:
Thread:
1/ “The Recovery Fund of 500 bn Euro will provide EU budgetary expenditure for the most
affected sectors and regions on the basis of EU budget programmes."
The size is substantial; it’s all real spending; it’s going where it’s supposed to go.
affected sectors and regions on the basis of EU budget programmes."
The size is substantial; it’s all real spending; it’s going where it’s supposed to go.
2/ This would be a huge step. If we get 500 billion in targeted, additional EU spending, it would go a significant way in sharing the costs of the crisis. But that of course requires the agreement of all other member states. And that is a big if.
3/ But there is significant value already in the 🇫🇷🇩🇪 statement: First, it means the German side agrees that EU loans can be used to finance EU spending in special circumstances. This is a major breakthrough.
4/ Second, it’s a clear no to financial wizardry attempts. Hard to see the Commission going back to a model that does not focus on the real expenditure part after this.
5/ Now it’s important to avoid the fate of Meseberg. This means that both sides have to own this agreement and have to get the more sceptical countries on board. It’s still a long way to an agreement. But this is a promising start.
6/ Full text here: bundesregierung.de/resource/blob/…
