European Reconstruction: A Project Born of Uncertainty
European Reconstruction: A Project Born of Uncertainty
Author(s): Antonia Colibasanu
Subject(s): Politics, Policy, planning, forecast and speculation, EU-Accession / EU-DEvelopment, Geopolitics
Published by: Mednarodni inštitut za bližnjevzhodne in balkanske študije IFIMES
Keywords: Europe; reconstruction; EU; policy; geopolitics;
Summary/Abstract: France and Germany on May 18 proposed a plan for the European Union’s economic recovery after the coronavirus crisis. The proposal calls for the creation of a common fund filled with money the European Commission would borrow from capital markets and channel to member states to fund their recoveries. It marks the first time Germany has given in to the idea of borrowing money together with other EU member states. It comes after the German Constitutional Court rejected the potential issuance of “coronabonds,” joint debt for which all EU countries would have been equally liable. The current proposal calls for joint debt, but it would be guaranteed by the EU budget and not by all EU countries individually.
Series: IFIMES Research Papers
- Page Count: 7
- Publication Year: 2020
- Language: English
- Content File-PDF