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EU states have yet to agree on coronavirus economic stimulus package

by Karen Faulkner, Worthy News Correspondent

(Worthy News) –
German Chancellor Angela Merkel has said a further summit of European Union member states may be required if Friday’s planned meeting fails to produce agreement on an economic stimulus package to help the bloc recover financially from COVID-19, the Washington Times reports.

Speaking to reporters after a meeting with Italian PM Giuseppe Conte in Berlin Monday, Merkl said “Bridges still need to be built” between EU states which have had strongly differing views on what the package should consist of. For example, Germany and France have proposed a one-off $569 billion stimulus package that would go mainly to heavily hit countries such as Spain and Italy. However, fiscally conservative countries are opposed to this plan because the whole bloc would have to go into debt to fund it, the Washington Times reported.

Leaders attending the summit planned for Friday in Brussels are expected to discuss a huge package of debt mutualization, grants, aid, and loans worth 1.85 trillion euros ($2.1 trillion.)

Expressing concerns that Friday’s meeting may not result in agreement – especially as there must be unanimity between all 27 EU states – Merkl said: “It needs to be an extraordinary effort that shows Europe wants to stand together at this difficult time. This has a political dimension that goes beyond the number. I don’t know whether one meeting will be enough or whether we will need to meet a second time before the end of the summer.” 

Present with Merkl as she spoke to reporters, Italian PM Conte warned that continued delay would slow Europe’s economic recovery. “Perhaps we should rather build highways than bridges, to get there faster,” Conte added.