Boots & Sabers

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Owen

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2148, 19 Jul 20

Wealthy EU Countries Resist Bailout Package

Nothing makes big spenders more angry than when people resist the shake down.

The pandemic has sent the EU into a tailspin, killing around 135,000 of its citizens and sending its economy into an estimated contraction of 8.3% this year.

The bloc’s executive has proposed a 750 billion-euro coronavirus fund, partly based on common borrowing, to be sent as loans and grants to the countries hit hardest by the pandemic. That comes on top of the seven-year 1 trillion-euro EU budget that leaders have been haggling over for months even before the pandemic hit.

All nations agree they need to band together but five richer countries in the north, led by the Netherlands, want strict controls on spending, while struggling southern nations like Spain and Italy say those conditions should be kept to a minimum.

At their dinner table Sunday night, the leaders could mull a proposal from the five wealthy northern nations that suggested a coronavirus recovery fund with 350 million euros of grants and the same amount again in loans. The five EU nations nicknamed “the frugals” — the Netherlands, Austria, Finland, Sweden and Denmark — had long opposed any grants at all.

Merkel and Macron walked out of heated talks before dawn Sunday with the frugals, bemoaning their lack of commitment to a common cause. “They ran off in a bad mood,” Dutch Prime Minister Mark Rutte said.

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2148, 19 July 2020

1 Comment

  1. Kevin Scheunemann

    Look at that!

    The socialist darling countries oppose socialism!

    What a surprise…not.

    When will liberals admit, no one wants their awful ideology.

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