Merkel, Macron hope for EU summit deal on budget, recovery fund

Merkel, Macron hope for EU summit deal on budget, recovery fund
imageStock Markets6 hours ago (Jun 29, 2020 01:51PM ET)

2/2

(C) Reuters. German Chancellor Angela Merkel and French President Emmanuel Macron meet at Meseberg castle

2/2

BERLIN (Reuters) – German Chancellor Angela Merkel on Monday held out hope that European Union member states will overcome their differences on a multi-year budget of more than 1 trillion euros ($1.12 trillion) as well as a recovery fund at a summit of leader next month.

“Myriad talks” remain to be held, Merkel told a joint news conference with visiting French President Emmanuel Macron, but added: “We hope we can find a solution, even if there is still a long way to go.”

EU leaders agreed earlier this month that urgent action was needed to haul their coronavirus-hit economies out of the deepest recession since World War Two.

They will seek to bridge differences at their summit on July 17-18 over a proposal by the European Commission, the bloc’s executive, to borrow 500 billion euros from the market for a new recovery fund that would help revive economies hardest hit by coronavirus, notably Italy and Spain.

With more than 100,000 deaths from COVID-19, the EU is keen to demonstrate solidarity after months of bickering that has dented public confidence and put the bloc’s global standing at risk.

Macron reiterated his position that a deal on the EU budget and recovery fund could be found at the July summit. He said the fund should include 500 billion euros of grants to the hardest-hit countries.

“The chancellor and I put it on paper: It’s our absolute priority,” Macron said. “Without this, Europe wouldn’t rise to the challenge.”

Merkel, who had initially rejected a proposal by Macron for a recovery fund, dropped Germany’s long-held opposition to mutualising debt to fund other member states when it became clear that the pandemic was an existential threat to the EU.

“It will not fail because of us,” she said of summit talks on the recovery fund.

Merkel, Macron hope for EU summit deal on budget, recovery fund

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *