Euro & Finance
Recovery fund brings EU one step closer to fiscal union
A European Commission plan to issue large amounts of common EU bonds under a coronavirus recovery fund potentially marks the first step towards the euro zone finally getting a region-wide safe-haven asset, investors said.
How EU member states reacted to the Commission’s Recovery Fund proposal
Most EU member states have reacted positively to the European Commission’s €750 billion Recovery Fund proposal, which aims to help the bloc cope with the devastating economic implications of the pandemic.
Von der Leyen’s other stimulus: A private sector boost of €600 billion
As part of its recovery plan, the European Commission wants to attract €600 billion of additional private investments in order to finance strategic sectors and support viable companies at risk of liquidity shortages in the aftermath of the COVID-19 crisis.
Von der Leyen proposes €750 billion stimulus under member states’ grip
European Commission president, Ursula von der Leyen, proposed on Wednesday (27 May) an unprecedented stimulus of €750 billion, mostly through non-refundable grants, with governments having a crucial role in deciding how the money will be spent.
Commission puts forward massive €750bn stimulus against corona-crisis
The European Commission will propose later on Wednesday (27 May) an unprecedented fiscal stimulus of €750 billion, mostly made up of grants that do not need to be reimbursed, to overcome the deepest recession in EU history.
ECB warns virus response could renew fears of euro breakup
A vast fiscal fightback to the coronavirus crisis unleashed by eurozone governments could raise questions about capitals' ability to repay debts and revive the threat of countries exiting the single currency, the European Central Bank warned Tuesday (26 May).
EXCLUSIVE: EU countries to propose excise tax for e-cigarettes and heated tobacco products
EU member states will ask the European Commission this week to place novel tobacco products, electronic cigarettes and heated tobacco products under the EU Tobacco Excise Directive, meaning they would be taxed just like traditional tobacco products, according to draft Council conclusions seen by EURACTIV.com.
Italian EU minister: No country questions the need for debt issuance
All EU member states, including the “frugals”, are now convinced that the resources for a virus recovery fund must be found on the market, Italian Minister of European Affairs Enzo Amendola told EURACTIV Italy in an exclusive interview.
Member states brace for ‘great stimulus’ battle
The European Commission’s proposal on the next seven-year budget and the accompanying recovery fund will this Wednesday (27 May) launch one of the most difficult negotiations in the EU history, as member states disagree over the size, shape and conditions, and primarily whether to give grants or loans.
‘Frugal Four’ present counter-plan to Macron-Merkel EU recovery scheme
The "Frugal Four" (Austria, Denmark, the Netherlands and Sweden) presented their own draft for an EU recovery fund in a 'non-paper' sent to the EU capitals on Saturday (23 May). The most important point: aid money must be repaid. EURACTIV Germany reports.
France wants EU budget rules suspended through 2021
France on Thursday (21 May) called on the EU to suspend its strict budgetary rules for member states for this year and next due to the severe hit economies have taken during the coronavirus pandemic.
MEP: Macron led Germany to decisions previously ‘unthinkable’
The recent Franco-German proposal for a €500 billion Recovery Fund is the result of French President Emmanuel Macron’s “turning point” last April, MEP Sandro Gozi told EURACTIV.it in an interview. “I place a lot of hope in the European action...
EU recovery funds will come with strings attached
The EU’s unprecedented stimulus to recover from the COVID-19 pandemic will come with certain conditions which should reflect the extraordinary nature of this crisis and the European goals, senior MEPs and diplomats have said
New capital markets union strategy to take central role in EU recovery
The European Commission will outline in the autumn a new package of initiatives to deepen the capital markets union, seen as a key tool to relaunch the EU economy in the aftermath of COVID-19, according to an internal document seen by EURACTIV.com.
Merkel: Germany must help other EU states get back on their feet
Germany must help its European Union neighbours revive their economies after the coronavirus crisis, Chancellor Angela Merkel told a meeting of lawmakers from her conservative bloc on Tuesday (12 May), according to several participants.
MEP Giegold on infringement: Germans in top positions must show the way
Commission boss Ursula von der Leyen may have to be tough on Germany and possibly launch infringement procedures to avoid accusations of being soft on her home country, particularly ahead of Berlin's upcoming EU presidency, according to Green MEP Sven Giegold, who had demanded explanations on the issue. EURACTIV Germany reports.
Conte still ‘cautious’ on ESM but up to Italian parliament to decide activation
Rome remains cautious on using the European Stability Mechanism (ESM) as it was designed to address different shocks. But if the fresh rules governing the new credit line are considered adequate, then it’s up to the Italian parliament to decide...
EU proposes scrapping usual conditions for ESM use in virus battle
The European Commission on Thursday (7 May) proposed scrapping the usual conditions for countries using the eurozone’s bailout fund as they try to revive their economies hit by the coronavirus epidemic. The proposal may make the fund more palatable for...
Coronavirus will trigger the deepest recession in EU history
The economies of EU countries will shrink by 7.4% this year as the coronavirus crisis is set to cause the worst recession in the bloc’s history, according to the European Commission's spring forecast presented on Wednesday (6 May), which also foresaw a significant rebound in 2021.
Commission expects Spanish economy to shrink 9.4% this year
The European Commission expects the Spanish economy to contract by as much as 9.4% this year due to the impact of the coronavirus, although it should regain some of the lost ground in 2021, when it is expected to grow by 7%, EU sources told EURACTIV.
The Brief – With friends like these in Karlsruhe…
For those who covered the eurozone debt crisis and the stuttering response by EU political leaders - until European Central Bank boss Mario Draghi rescued them - Tuesday’s (5 May) ruling by the constitutional court in Karlsruhe landed with a grim sense of inevitability
German court gives ultimatum to ECB on bond-buying programme
Germany’s central bank (Bundesbank) should suspend the implementation of the European Central Bank's critical bond-buying programme unless the ECB proves the proportionality of its monetary stimulus, aimed at shoring up the eurozone's economies, Germany's Constitutional Court ruled on Tuesday (5 May).
Top German judges to rule on massive ECB economic support
Germany's top court will rule Tuesday (5 May) on mass bond-buying by the European Central Bank, a tool the Frankfurt institution has deployed like never before to cushion the impact of the coronavirus.