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European Union leaders agreed Thursday to set up a trillion euro emergency fund to help in efforts to recover from the Corona virus pandemic, to prevent a further failure this time, but with the details postponed. controversial for the summer..
With the European Union headquarters in Brussels closed, like most parts of the continent, the 27 leaders held a four-hour video conference to study the proposals as they gathered behind a larger budget for the period from 2021 to 2027, including an economic recovery program..
The joint budget is equivalent to about one percent of the European Union’s economic output, which has long been one of the most contentious issues among members. Expanding it will not be easy, even with Italian Prime Minister Giuseppe Conte praising what he said was “great progress” after the summit ended..
French President Emmanuel Macron said there were still differences between Union governments regarding whether the fund would provide cash subsidies or only lend.
“The differences persist,” he told journalists in Paris.“
“I honestly say: if Europe takes a loan to lend to others, that will not reach the level of response that we need,” he said, adding that it would be a burden for countries that are already indebted, such as Italy, Belgium and Greece..
Europe is facing acute economic shock from the spread of Covid-19, the respiratory illness caused by the emerging Corona virus, which has led to the closure of borders within the Union and the Member States struggling against medical supplies..
European Central Bank President Christine Lagarde told leaders that the pandemic could cut output in the eurozone by five to 15 percent, officials and diplomats said..
According to a Reuters poll, the euro zone economy is expected to contract 5.4% this year, which will represent the worst economic performance since the currency was introduced in 1999. But it will be a number better than the latest forecasts. of the International Monetary Fund, indicating a decrease of 7.5%..
