EU Ministers Agree On 500 Billion Euro Coronavirus Package

By Stefan J. Bos, Special Correspondent Worthy News

(Worthy News) – European Union finance ministers agreed Thursday on a half-a-trillion euro ($550-billion) rescue package for European nations hit hard by the coronavirus pandemic. The chairman of the Eurogroup, Mário Centeno, confirmed the deal following marathon talks in Brussels where Italy warned the EU would collapse without financial solidarity.

But ministers failed to agree on a demand from France and Italy to share the costs of the crisis by issuing so-called ‘Coronabonds.’ Italy, France, and Spain pushed firmly for these instruments. However, it was a red line for Germany, the Netherlands, Finland, and Austria. The Netherlands, for instance, fears it could lose its high credit rating by joining economically weaker nations such as Italy in a Coronabonds-scheme. Such an arrangement could make it more expensive for wealthier nations such as the Netherlands to borrow on international markets.

A compromise was reached after EU powerhouse Germany and France insisted on ending opposition from the Netherlands. The ministers also offered Italy assurances that the 27-nation bloc would show solidarity. More than 17,000 people have died in Italy alone from the new coronavirus COVID-19, officials said.

Italian Prime Minister Giuseppe Conte had earlier warned that the EU would collapse if it failed to rise to its “biggest test” since the Second World War. “If we do not seize the opportunity to put new life into the European project, the risk of failure is real,” he added in an interview.

However, “Europe has decided and is ready to meet the gravity of the crisis,” French Finance Minister Bruno Le Maire tweeted after the talks.

The final statement noted the rescue would be specifically earmarked for costs related to the COVID-19 outbreak. The pandemic has killed more than 65,000 people in Europe, including many in Italy and Spain.

Latest Worthy News