Nordic skepticism to Merkel and Macron

Austrian Chancellor Sebastian Kurz was critical of the German-French plan already immediately after it was published on Monday.

Now Denmark's and Sweden's finance ministers are filling up.

- We are skeptical above all about the idea that the EU would lend money and then give them out as a grant. It would be a deficit financing of the EU budget. It would be something completely new and we are very skeptical of that. In that case, it is better to borrow to borrow, says Magdalena Andersson (S) to TT after Tuesday's web meeting with her colleagues from the rest of the EU.

How to do instead?

- We naturally think that the existing resources we have can be used more efficiently. When we are in a crisis now, there are maybe things we do not need to do, says Andersson.

The German-French plan is that the EU jointly borrows money through guarantees from the member states. Then, EUR 500 billion - equivalent to SEK 5 300 billion - can be provided in grants to the worst-affected regions and sectors in the EU. The repayment of the loans will then be made jointly by the whole EU over the coming budget periods.

- This new 500 billion fund will enable Europe to grow out of the crisis together and grow stronger. It is a very good message not only for the economy and jobs but also for the future of the EU, says Germany's Finance Minister Olaf Scholz, according to the Reuters news agency.

- It is in the interest of all European countries to sign this initiative. If no progress is made, no one will come out of this, in turn France's Foreign Minister Jean-Yves Le Drian told the television channel LCI.

Important market

Next week, the European Commission will present its plans on what a recovery fund should look like and how the proposal for a new long-term budget for 2021-2027 can be adapted to the new reality.

Magdalena Andersson says she "understands" the need for recovery, but urges her to keep the EU budget down.

- Then of course we can discuss what the Commission is coming up with and the German-French proposal. But what is perhaps most important is that the European recovery will not happen through the EU budget or money from Brussels. The big money is in the Member States' own economies and budgets, Andersson says, and above all emphasizes the importance of removing all temporarily closed borders and barriers to trade.

- If Europe's economy is to recover, the single market must work again. This is far more important than other measures that we are discussing, says the finance minister to TT.