The pandemic does for Europe what the financial crisis couldn't

Has the coronavirus pandemic achieved for Europe what the global financial crisis couldn’t?

In the wee hours of Tuesday morning, the European Union’s 27 member states finally agreed, after nearly five days of acrimonious negotiations, a €750 billion ($1.2 trillion) stimulus plan in response to the pandemic.

French President Emmanuel Macron rightly hailed it as an historic day for Europe. For the first time in more than 60 years, the European Union will be able to run deficits to respond to economic shocks, fund that spending with debt backed by all the member states, and transfer the collective funds to the states that need it most.

German Chancellor Angela Merkel and French President Emmanuel Macon. Leaders of the 27 members of the European Union agreed on a stimulus package in response to the coronavirus pandemic after nearly five days of acrimonious negotiations.Credit:Reuters pool

It’s not quite a "Hamilton moment" for the eurozone – it doesn’t quite produce a "United States of Europe" – but it is an extremely significant, albeit small, step towards a more integrated Europe; one with significant political, economic and financial market implications.

The vision of a united Europe that underpins what the federalists within the bloc describe as the "European Project" has always been frustrated by the disparities between the economies and cultures of the members of the EU; most notably and starkly the divisions between the rich northern states like Germany, France and the Netherlands and their poor cousins in the south like Italy, Spain and Greece.

https://www.smh.com.au/business/mark...22-p55ecq.html


BTW this has NOTHING to do with Brexit and the word never needs to be mentioned again.

Re: The pandemic does for Europe what the financial crisis couldn't

Well good for them Bruce! So now Germany and France can hold all the other countries to ransome having loaded them with massive debts, and a federal Europe is one step nearer ......

Re: The pandemic does for Europe what the financial crisis couldn't

Will 750 billion euros be enough to bail out 27 countries and help cushion their economies from the shock of covid?

It seems a small amount to me.

Wait till Spain and Italy ask for massive rescue packages.

And it wasn't all smooth running.
https://www.bbc.co.uk/news/world-europe-53481542

Oh, the scope for bickering is limitless. It might well turn out to be the end of the EU.

Re: The pandemic does for Europe what the financial crisis couldn't

Hi

750 Billion is a small amount, it is costing us 300 billion.

As regards bickering our lot are not much better.

Re: The pandemic does for Europe what the financial crisis couldn't

You well may be right. EUR 750 billion will be made available for corona repair measures. Just over half of that, 390 billion (a bit lower than spain and italy wanted to go), is in the form of grants that do not have to be repaid by recipients. Rutte and his frugal four initially wanted to prevent this and provide aid only in the form of loans. Other countries objected because borrowing money increases the problems of the countries concerned. At Rutte's insistence, it has been included that financial aid can be stopped if the recipient countries do not implement sufficient "reforms", such as making the labour market more flexible. Countries in distress must also first present plans for the "reforms" of their social policies or they will not even be eligible for aid.

For italy 81 bn is available, plus 127 bn in favourable loans.

Re: The pandemic does for Europe what the financial crisis couldn't

In the end the frugal five gave in. In exchange, the 'frugal four/five' got the rebates on their EU payments increased. The rebate for the Netherlands increases from 1.6 billion to 1.9 billion euros per year. Rutte also managed to ensure that the EU countries are allowed to keep a larger share of the customs duties they levy on goods entering the EU (like from the UK ). This will save the Netherlands several hundreds of millions of euros per year. Together with the higher rebate, a threatened setback on EU payments of EUR 600 million per year has been eliminated for the netherlands.

Re: The pandemic does for Europe what the financial crisis couldn't

Besides the usa there then is the united states of europe, USE.

Re: The pandemic does for Europe what the financial crisis couldn't

Blimey Solasch .... there must be some real creative accounting goes on in the EU.

On this occasion though, as Covid is going to cripple a great many economies for a long while,
I wish them well in their endeavours .... as long as they don't endeavour to cross ours ( the UK).

Re: The pandemic does for Europe what the financial crisis couldn't

It'll never happen
Not with countries like Turkey wanting membership and courrupting anything remotely European into a bastardised offshoot of the Middle East ... and heaven forbid or Allah forfend the diverse politics get tangled together.

Re: The pandemic does for Europe what the financial crisis couldn't

I'm not overly worried about turkey (in regard as member). They have been candidate since 1999, but in 2018 started to move away from the EU. Farage was wrong on that too.