On Monday morning, following over three days of discussions, European leaders still hadn’t reached a deal on a concerted rescue fund to attack the financial effect of the coronavirus pandemic.
“This is truly a very, very tough discussion since it’s not simply about this one brand new pair of large money, but it changes the shapes of monetary union,” Guntram Wolff, Director of the Bruegel economic think tank in Brussels, informed Euronews.
“It is the first time that the EU borrows cash to provide its grants to nations. So it is a game-changer concerning how this fiscal union, how this European Union works”
The EU summit in Brussels was designed to last just two days. But discussions went on in the wee hours of Monday morning and were expected to pick up again in the day.
The significant sticking point is still the dimensions and terms of a huge coronavirus restoration fund — together with all the so-called’frugal’ countries of Austria, Sweden, Denmark, the Netherlands, and today Finland insisting on rough terms on how member countries will be able to spend their cash.
Wolff says the actual barrier is not cash but political sovereignty.
“The harder problem is what is known as conditionality — or you may call it an oversight, or you could call it command of this cash,” Wolff said.
“That is a feeling, about the way to talk sovereignty, and that is why it’s really hard.”
Dutch Prime Minister Mark Rutte needs a URL to be made involving the handout of EU funds and the rule of law — a link aimed toward Poland and Hungary, states with right-wing governmental authorities that many from the EU believe are falling from democratic principle.
“It is not so much concerning the five or 10 billion less or more than any nation will pay or give. It is about what exactly does it mean concerning intrusion into federal politics, which I presume is inevitable,” explained Wolff.
“I mean, you need to delve into federal politics when you have combined money, and that is what is actually at stake”