EU leaders approve program of emergency support to economy

After 4.5 hours of negotiations in the form of a video conference, EU leaders agreed to a 540 billion Euro emergency support program for the economy. However, they postponed a decision on the creation of a future long-term Fund and instructed the European Commission to develop its parameters until May 6, Report says, citing Euronews.

"Of course, there will be a reasonable balance between grants and loans, and this is a matter of negotiations," said European Commission President Ursula von der Leyen.

According to diplomatic sources, the amount of the Fund can reach up to 2 trillion euros.

Germany, the Netherlands, and several other states are opposed to the issuance of pan-European securities, so-called coronabonds, which would allow raising money under the General guarantee obligations of all the countries of the community. In this regard, von der Leyen warned that EU States would have to increase their contributions to the community budget from 1.2% to 2% of GDP for the next 2-3 years to Finance economic recovery after the coronavirus pandemic.

Germany- the engine of the European economy, says it is ready to increase its contributions to the General Fund. Italy and Spain, which insist on accepting collective debt, support this idea.

In two weeks, EU leaders will meet again to continue negotiations.