FRANCE, GERMANY PUT UP 500-B EURO RECOVERY PLAN FOR EU

Despite suffering from recession and facing sluggish economic growth in the next two years, Germany and France have taken the cudgels for the 26-member European Union (EU) by putting up a 500 billion euro pandemic recovery plan for the entire bloc.

Speaking during a joint video conference on May 18, German Chancellor Angela Merkel and French President Emmanuel Macron announced that the new Franco-German fund would be part of EU’s broad recovery plan, with Merkel telling Stephanie Halasz and Pierre Buet of CNN that the European Commission (EC) will borrow money to boost the European economy, which has been severely weakened by emergency measures implemented to tackle the coronavirus pandemic.

“To support a sustainable recovery that restores and enhances growth in the EU, Germany and France support an ambitious, temporary and targeted recovery fund,” Merkel said.

Macron said the new stimulus fund would be backed by the European Central Bank on the financial market but added the 500 billion euros will have to be repaid but “not by the beneficiaries” he added. He also cited the need to "reduce our dependence on the outside in strategic sectors” and “better fight against predatory investments from other powers.” #coronavirusimpact #COVID19