Coronavirus: four European countries present their own economic aid plan

Chancellor Sebastian Kurz's Austria and three other countries have presented a counter-proposal to the recovery plan proposed by France and Germany. REUTERS / Leonhard Foeger

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The Netherlands, Austria, Denmark and Sweden presented their own economic aid plan on Saturday 23 May. They wish to help the European Union overcome the crisis while reaffirming their rejection of a mechanism for pooling European debt.

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In their proposal, the four countries, nicknamed the "frugal" , evoke emergency aid in the form of loans, according to a proposal published by the office of Austrian Chancellor Sebastian Kurz . These must be punctual with favorable conditions and be granted within two years.

According to the proposal, the money loaned should be "  directed towards activities that contribute the most to recovery, such as research and innovation, strengthening the health sector and a green transition  ". In return, “  firm commitments  ” will be expected from the beneficiary countries concerning the implementation of reforms and compliance with the budgetary framework.

Particular attention is paid to fraud in this recovery plan. The four countries believe that it will be necessary to "  protect expenditure against fraud  " by closely involving European prosecutors and those responsible for fighting corruption.

Rejection of the Franco-German plan

Regarding the 500 billion euros plan announced by French President Emmanuel Macron and German Chancellor Angela Merkel on Monday May 18, the four "frugals" still reject the idea of ​​pooling European debt. According to them, this would allow the least disciplined and weakest European economies to benefit from cheaper financing thanks to the stronger economies of the North.

 ►  Read also: Coronavirus: a recovery plan which marks the return of the Franco-German couple

The four countries also reject any "  significant increase  " in the EU budget, as envisaged by the Franco-German plan. Rather, they plead for a modernization of the budget and wish to save money "  by redefining priorities in the areas least likely to contribute to the recovery  ".

On the other hand, the expenses linked to Covid-19 could be privileged or temporarily increased. Given the gloomy economic forecasts for this year, "  additional funds for the EU, regardless of how they are funded, will weigh even more heavily on national budgets,  " according to the four countries.

For its part, the European Commission should present next week its own plan to stimulate the economic recovery after the health crisis.

(With AFP)

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  • Coronavirus
  • Economy
  • European Union
  • Austria

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