|Author (Corporate)||Cardiff EDC|
Official information, media reports and analyses concerning the initiative jointly put forward by France and Germany aimed at fostering economic recovery across the European Union (EU) in the aftermath of the COVID-19 (coronavirus) pandemic.
The proposed 'reconstruction fund' amounts to €500 billion injected to EU budget funds, and later allocated to the worst hit sectors and regions. Investment would be encouraged in particular in areas connected to environmental and digital transformation. The sum would be raised by the European Commission on the capital market and channel it to crisis-affected Member States as aid (grants) within the scope of the EU's Multiannual Financial Framework (MFF).
The Franco-German plan recognises that the impact of the coronavirus outbreak vary from country to country within Europe, placing cohesion in danger. This longer-term plan adds to the immediate economic response to the impact of the pandemic.
The Franco-German initiative was met with resistance by the so-called 'frugal' Member States, which had thus far only accepted a rescue fund that gave out loans to the worst-affected countries and regions. Media outlets reported on 23 May that this group of countries had submitted proposal to counter the Franco-German initiative.
The announcement of this proposal preceded the adoption of the European Commission's own proposal for a recovery fund to address the challenges imposed by the pandemic, as tasked by the European Council.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Challenges facing the European Union [EU], Economic Governance | Situation|
|Countries / Regions||France, Germany|
|International Organisations||European Union [EU]|