Coronavirus: no agreement between EU finance ministers

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After an entire night of talks, European finance ministers failed to reach an agreement on Wednesday 8 April. The countries of the North and the countries of the South are opposed over the economic response to be given to the ravages caused by the coronavirus pandemic.

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16 hours. For 16 hours, the finance ministers of the European Union countries discussed. Their crucial meeting stretched until the morning of Wednesday, April 8. And finally, Mario Centeno, president of the Eurogroup, announced on Twitter that no agreement has been reached on the common response to the economic crisis caused by the Covid-19 pandemic. “ We are close to an agreement, but we are not there yet. I suspended the Eurogroup, ”wrote the Portuguese economist on the social network, confirming a little more the divisions between the member countries.

After 16h of discussions we came close to a deal but we are not there yet.
I suspended the #Eurogroup & continue tomorrow, thu.
My goal remains: A strong EU safety net against fallout of # covid19 (to shield workers, firms & countries) & commit / to a sizeable recovery plan pic.twitter.com/kGHoURgdrv

Northern countries refuse to pool debts

The president of the Eurogroup recalled his objective of maintaining " a solid European safety net against the fallout from the Covid-19 " and of " initiating an important recovery plan ". The finance ministers of the 27, meeting in videoconference, are still opposed. The initial plan included the loan of a relief fund of up to € 240 billion , a guarantee fund for businesses and support for short-time working.

But the countries of the South, which are among the most affected by the pandemic (Italy, Spain, France, Greece, etc.), are calling for an unprecedented and greater financial effort. Major subject of their request: the creation of a common debt instrument, the "coronabonds". The northern countries, including Germany, the Netherlands, Austria and Sweden, are more measured. They notably oppose the idea of ​​pooling debts, deeming some indebted southern states too lax.

► Read also: The "coronabonds", the united tool that breaks Europe

Resumption of discussions tomorrow Thursday

Bruno Le Maire, French Minister of Finance, played the compromise card by putting forward the idea of ​​a fund taking charge of the common debt of the EU states but limited to essential public services such as health and endangered industries. Talks have not yet been concluded.

After 16 hours of negotiations, no agreement with the # Eurogroup on the economic response to the #coronavirus crisis. We resume tomorrow. With @OlafScholz, we call on all European states to rise to the exceptional challenges to reach an ambitious agreement.

" With Olaf Scholz (his German counterpart, note), we call on all European states to rise to the exceptional challenges to reach an ambitious agreement ", tweeted Bruno Le Maire. Discussions are scheduled to resume Thursday, April 9. If an agreement is reached, it would still have to be approved by the heads of state and government, who had themselves held a crisis meeting on March 26 and had found no common ground.

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