Germany and the Netherlands reject the plans of their European partners to tackle the economic consequences of the coronavirus
The European Union's partners clashed again on Thursday over measures to tackle the coronavirus crisis. Spain, France and Italy, backed by nine other countries, proposed the issuance of EU public debt in the form of corona bonds during the European summit held on Thursday to coordinate strategies to recover economic and social normality once the pandemic is over. Germany, the Netherlands and Austria reject this option outright, which would mean sharing the costs of Europe's worst health crisis in recent years.
The presidents of Spain, Pedro Sánchez, and Italy, Guiseppe Conte, stood up at the end of the meeting and refused to second the declaration that the European authorities were going to make. Both presidents are demanding decisive and forceful measures. The European Council has agreed, after the demand of Italy and Spain, to meet again in two weeks with new economic proposals to face the industrial stoppage that is taking place in the EU as a consequence of the coronavirus.
“We invite the Eurogroup to present proposals in two weeks. These proposals should take into account the unprecedented nature of the coronavirus shock affecting all our countries,” says the joint statement adopted by EU leaders after a six-hour video conference summit recorded by Efe. “Our response will be stepped up, as necessary, with more action in an inclusive manner, in light of developments, to provide a comprehensive response,” the statement said.
During the tense meeting, held by video conference, discrepancies in addressing the health crisis became very visible. The northern countries, as during the worst moments of the last major EU recession, have advocated that each country should come out of this new crisis with its own resources, while the southern partners are calling for joint action.
Germany has rejected outright the formula of bonds, defended this time by France. Emmanuel Macron, French President, has assured that this is not a crisis like the previous ones and all the partners will suffer equally. The Netherlands and Austria have also supported the position of the Germans.
The EU leaders have not reached an agreement, neither for the intervention of the Eurozone rescue fund, the European Stability Mechanism (MEDE), nor for the issue of “corona bonds”, the Union's mutualised debt; the two main measures under discussion and which would remain on the table pending the arrival of the Economy and Finance Ministers (the Eurogroup).
“We have discussed all the possibilities and we have decided to continue all our efforts based on a very strong commitment. We are ready to do whatever is necessary to find the right solution, but we have to continue our efforts,” said European Council President Charles Michel at a press conference after the meeting. “The door is open to discuss all other possibilities on the table,” said European Commission President Ursula von der Leyen.
The head of Dutch finance, Wopke Hoekstra, said after the summit on Thursday that Brussels has an obligation to investigate countries like Spain for not having sufficient budgetary capacity to deal with situations like the coronavirus and not having saved during the time it has been growing. The Prime Minister of Portugal, António Costa, reacted angrily to these statements, which he called “repugnant and contrary to the European spirit”, and rushed to defend Spain.
“If the EU wants to survive, it is unacceptable that any politician, whatever country he or she may be from, can give a response of this nature in the midst of a pandemic such as the one we are experiencing,” said Costa in statements collected by Efe.
