Macron says EU needs corona rescue package worth 5-10% of GDP

Source: New Europe

April 26 2020

By Zoi Didili

French President Emmanuel Macron said on Thursday after a videoconference held with EU leaders, that the EU’s rescue package for the Covid-19 crisis should be worth at least 5-10% of EU’s GDP, Reuters reported.

During the virtual meeting, EU’s heads of state and government tasked the European Commission with preparing a recovery plan for the pandemic’s aftermath and endorsed a €540 bn rescue package agreed by Eurogroup on April 9.

Yet, no details were discussed on the size and type of the mechanisms that will channel the funds.

In an interview given to FT earlier this month, Macron had warned over the collapse of the EU as a “political project” unless richer states support the countries worst-hit by the Coronavirus pandemic. To this end, a fund should be set up, that “could issue common debt with a common guarantee” to finance member states according to their needs.

Thierry Breton, the EU Commissioner for Internal Market echoed on Friday Macron’s fears over Eurozone’s collapse, saying that the Coronavirus outbreak could lead the Union to a 5-10% recession.

“As of today, in the European Union, we’re on course for a 5 percent to 10 percent [recession], meaning it’s about 7.5 percent. But that is today, and if things don’t improve and if we have a second peak, things could get worse”, Breton said on France 2 television.