The two leaders have presented this Monday a “franco-German initiative” aimed to revive the activities of the european Union after the outbreak of the coronavirus.

Emmanuel Macron and Angela Merkel have proposed on Monday a plan to boost Europe’s 500 billion euro in the face of the economic impact of the sars coronavirus, which plunges the continent into a recession of historic proportions.

“To support a sustainable recovery that restores and enhances the growth in the EU, Germany and France support the creation of a Fund ambitious recovery, temporary and targeted” within the framework of the next EU budget” features “of 500 billion euros”, notes a joint statement.

environmental Commitments

The fund “will strengthen the resiliency, convergence, and the competitiveness of european economies, and increase investment, especially in the transitions and the ecological and digital, and in research and innovation”. It will be intended to give priority to the sectors and regions most affected by the epidemic.

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“We assume that this is targeted on the countries and sectors that are most affected by the crisis but who also have the most need a stimulus budget. For example, tourism in the South will need a european solidarity”, gave details of Emmanuel Macron to our colleagues at Ouest-France.

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“The european recovery needs to be accompanied by commitments, conditions in terms of climate, environment and biodiversity,” said the head of State, explaining that “if we help the automotive industry in Spain, we will rather encourage the electric, the hybrid, the program batteries european to create jobs, rather than going to support an industry to lower environmental performance”.

borrowings on the markets

Paris and Berlin proposed that the european Commission is funding the support to the revival in borrowing on the markets “on behalf of the EU”. This money will then be entered in the “budget expenditure” to the european countries. The financing will be targeted on the difficulties related to the pandemic and its impact”. The money will be progressively repaid over several years but “the countries benefiting from the stimulus plan will not have to repay the aid,” said Emmanuel Macron.

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It is not with this tool famous ‘eurobonds’, debt that is shared directly between european States, such as Italy in particular has claimed but which are rejected by the Northern Europe and Berlin. But this plan, if it is retained by the 27 countries of the european Union, would be similar to this model. The French head of State stressed that it was “a major step” in the european history of these european loans. “This will not be loans, but grants” direct ” to the most affected countries, said Emmanuel Macron.

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This recovery plan would be in addition to the emergency programme already decided in the face of the pandemic by the Finance ministers of the euro area and made up of building loans in particular.