EU Unveils $580 Billion Aid Package Amid Virus Lockdowns
By Stefan J. Bos, Special Correspondent Worthy News
(Worthy News) – After the U.S. unveiled similar measures, the European Union has approved a $580 billion aid package to help limit the devastating economic consequences of coronavirus pandemic lockdowns in member states. However, beyond the immediate aid, the dispute remains over the structure – and funding – of a long-term recovery plan. It emerged this weekend that the European Commission, the EU’s executive, has now been tasked to make proposals by May 6, when another video conference will be held.
Several EU member states such as Italy and Spain, two of the countries worst hit by the pandemic, demand that the next long-term EU budget starting from January 1 next year will be the cornerstone of the recovery efforts. But northern countries such as Denmark and the Netherlands oppose paying for poorer southern nations they see as financially irresponsible.
Despite the tensions, European Council President Charles Michel says he expects the package to be operational by June 1. Michel said it would help pay lost wages, keep companies afloat, and fund health care systems. “We all agreed that the health and safety of our citizens come first.” He added that “We also agreed to continue to follow the situation closely in particular as we approach the holiday season-. [We agreed] to coordinate as much as possible to ensure a gradual and orderly lifting of restrictions.”
At the virtual summit, the EU leaders also agreed on a recovery fund. But they declined to give a specific figure to rebuild the economies of this 27-nation bloc with 446 million inhabitants – the world’s third-largest population after China and India. However, EU officials reportedly said $1.1 trillion to $1.6 trillion would be needed. That trails spending by the United States, which has 333 million people.
Last month, U.S. President Donald Trump signed a massive $2.2 trillion stimulus package. And on Friday Trump added $484 billion for especially small businesses, to rescue an economy suffering from the coronavirus pandemic.
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