It was not easy, it was not fast and it was not completely satisfactory for everyone, but after a battery of consecutive failures, on Thursday the EU's finance and economy ministers finally managed to agree on the details of the first community safety net against the effects of the coronavirus. Up to 550,000 million euros in liquidity lines for States (through the European Stability Mechanism), companies (through the European Investment Bank) and to avoid mass layoffs, using the Sure, a mechanism proposed last week by the European Comission. It is, yes, only the first line of defense, until it is possible to define a Reconstruction Plan, a Marshall Plan later, for which there is not yet a design, estimated amount or a favorite mobilization instrument. No minimum understanding to pay it with joint debt.

After abruptly dissolving on Wednesday morning, after a sleepless night, the appointment was again at 17:00 on Thursday. However, technical work and exchanges between the most supportive parties forced a delay until six, seven and finally until 21:30, with a text endorsed by all the major players . The ministers did not want a new role, and the slogan was to negotiate in the shade until the differences were no longer insurmountable. And only then do you put the headlines in front of the screens. And it worked, because in a little over half an hour they closed the session applauding .

He did it in the only way possible. They had been fighting for days for a few words. Suppress the Dutch demand for macroeconomic conditionality for the Mede credit lines in exchange for no explicit mention in the pact to Eurobonds or joint issues. It was the line of action that France and Germany tried in vain on Tuesday and that in the end, after a lot of sweat and with a loan from all, but in particular the Hanseats, was achieved.

Actually, 95% of the work was done since the weekend. The general lines were outlined, but the key was the details and the connections between the first phase, that "triple safety net" according to Nadia Calviño, and the joint reconstruction in some way. To please everyone, the agreement contemplates that the president of the Eurogroup, Mario Centeno, send a letter to the European leaders indicating that there are some members, but not all, who want Coronabonos . It seems absurd, because everyone knows that, but these documents are an essential part of the EU procedures, of the procedures that make up the meetings of the Council, elements that lay the groundwork and are consolidated and cited. With political and sometimes legal weight.

The ministers have received harsh criticism. Their bosses, too. From Madrid and from Rome, Pedro Sánchez and Giuseppe Conte have been raising their tone for weeks, warning, making criticisms that had never been made to the EU from some latitudes and the lack of solidarity. Putting pressure. France and Germany, more discreetly, did the same. The positions of Italy and the Netherlands, the former refusing any kind of conditionality in the lines of aid to the States that need them, and the latter demanding it at any cost, had burst previous attempts. And any solution was to iron out rough edges.

The handicap of the governments in coalition

The five big players, all except France, have coalition governments, which makes it even more difficult to establish unique positions . In Germany, the finance minister is much more in favor of the European court measures than his predecessors. In the Netherlands, the opposite. There are key internal dynamics. In Italy the Mede, the rescue mechanism that will now enable a new line of credits with very low conditionality, nothing to do with those of the Troika of the past, is a taboo, toxic issue that Parliament has broken. In The Hague, the finance minister is a possible competitor to his prime minister in the upcoming elections in 2021, and they maintain an undisguised pulse to be the strongest towards the most orthodox electorate.

In the end, however, they made a move. The approved text says that the only requirement to access the Mede line of credit will be "that the States that request support commit to using this line to support the internal financing of the costs related to medical care, cure and prevention." Covid 19 "direct and indirect.

On the Reconstruction Fund, the ministers emphasize that "it will be temporary, with specific objectives and in accordance with the extraordinary costs " generated. But avoid any mention of size or instrument to make it effective. And of course, no taboo words. Mutualization, right now, is not possible. Berlin, Vienna, Helsinki among others have made it very clear.

They do not believe that a Eurobono is the solution for this specific situation, there is no European Treasury or a common fiscal policy, and the idea of ​​a transfer union causes hives in their societies. So nobody expects it in the short term. But there are intermediate formulas. The Commission, the EIB and Mede itself issue debt in the highest rated markets and in a way they are embryos of Eurobonds. It is not what the South is asking for, nor is Macron, who advocates a new ad hoc instrument that finances the necessary investments with risk sharing, but with very clear borders.

Italy and the Netherlands: opposite reactions

The first reaction of the Italian Minister of Economy, Roberto Gualtieri, was very satisfying , with a message sent in an internal key: "We have put European bonds on the table, removed the Mede conditionality and we are giving the European Council an ambitious proposal. We will fight to make it happen. "

In line opueta, his Dutch colleague, Wupke Hoekstra. He talks about an ambitious package and remembers that although "there are no conditions for healthcare expenses", there are some for others. "It is fair and reasonable," he explains. And warns: " We are and will continue to be against Eurobonds "

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