#Eurogroup deal shows EU leaders must now raise ambitions and launch recovery bonds

| April 10, 2020

The agreement reached yesterday evening (9 April) by the Eurogroup on a set of financial measures to support EU member states in the fight against COVID-19 and its immense economic and social impact – and particularly the agreement on a new Recovery Fund to support European economy and cohesion among member states and citizens – marks a welcome turn in the response of the European Union to the crisis, after many weeks of dis-alignment among member states.

Sandro GOZI, president of the Union of European Federalists and MEP, said: “The framework of the deal is positive. I believe that the most important decision is the creation of the new ‘Recovery Fund’ to help European economy rebound from the economic impact of COVID as fast as possible, even if the key features of the fund are still undefined.  EU leaders next week can take a bold decision and make the Fund a really transformative instrument for the future of the European Union, if they decide that the Fund can finance itself in the market issuing recovery bonds, guaranteed by the European Union itself, if necessary together with member states. That said, the Eurogroup should have reached a deal much earlier and without the display of disunity of the past weeks, which was not positive for the European Union’s image among European citizens. It is just the last evidence of the flaws of the Eurogroup, an inefficient and intransparent body, with a great power that should be moved to the proper institutions of the European Union.”

The Recovery Fund complements a new European Re-Insurance Mechanism (SURE) to support national measures to face the raise of unemployment, the deployment of the European Investment Bank in support of businesses across Europe, and a limited but unconditional use of the European Stability Mechanism credit lines, for a total close to €600 billion, which add to the already ongoing crucial actions by the European Central Bank supporting member states’ debt issuance to face the crisis. The European Federalists urge the European Parliament to support increasing the level of ambition of the deal reached by the Eurogroup with respect to the “recovery Fund” in its plenary debate next week in preparation of the European Council and urges the Heads of State and Government to finalise an ambitious deal that can become effective already in the coming weeks.

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Category: A Frontpage, coronavirus, EU, European Commission, European Parliament, Health

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