Berlin/Paris: A special fund of 500 billion Euros has been declared to bring the European economies, derailed due to the Coronavirus crisis, back on track. This information was revealed after the videoconference held between the heads of state of Germany and France. The list of economies most affected by the Coronavirus crisis includes leading economies of Europe and among them, Germany has already declared recession.
Coronavirus has played havoc in the European continent claiming more than 63,000 lives. The number of Coronavirus cases has reached nearly 1.8 million and in the last 24 hours, there was an addition of more than 16,000 new cases, to the ever-increasing count. Against this background, this announcement coming from, Germany and France, the leading economies of Europe, becomes significant.
On Monday, German Chancellor Angela Merkel and French President Emmanuel Macron met via videoconferencing. Both the leaders announced a recovery fund of 500 billion Euros. Both countries suggested that the European Union (EU) should raise this amount through borrowings.
The German and French leaders said that this fund should be given as an aid to the member countries, who suffered huge losses in the Coronavirus pandemic. The leaders also proposed that a certain portion of the fund should be reserved for compensating the sectors of the EU economy, worst affected by the Coronavirus pandemic.
French President Macron justified the fund saying that the new fund is a major deviation from the normal functioning of the EU and this was necessary to maintain the unity of the Eurozone. German Chancellor Merkel said at this time that this step was necessary to come out of the Coronavirus crisis and stand strong once again. She also claimed that Germany will contribute 27% of the fund.
Various international groups are predicting that the European economy will be gripped by recession this year. A few days ago, it was announced that the German economy was in recession. There are indications that France, Italy, Spain and Belgium also will be faced with a recession. In this scenario, the declaration of Recovery Fund comes as a solace.