BRUSSELS: The European Union has proposed to develop a 750 billion- euro or $825 billion fund to help recover the bloc’s economy through the deep recession which has been brought by the Covid-19 shutdown. Paolo Gentiloni, in-charge of economic affairs at the European Commission, said that the move would induce a turning point for Europe during this unprecedented crisis.
The EU is, however, still deeply divided over the conditions at which the funds are to be attached and EU’s executive arm is likely to determine this in the course of the coming weeks.
Earlier this month, Germany and France had agreed to a one-time 500 billion euro fund to add further cash to the financial measures of the bloc.
EU is planning to borrow money from the financial markets to secure the various financial sectors of its 27 affiliated countries.
However, the move has spiked some questions within the EU. “Will it be grants or loans? And if it will be grants, who are going to pay the grants?,” Magdalena Andersson, Swedish Finance Minister, said.