EUROPEAN UNION leaders are unlikely to reach an agreement on plans for a €750 billion coronavirus bailout today when they hold showdown talks.
With an unprecedented recession looming large over the bloc, the EU27 have agreed to establish a recovery fund for pandemic-stricken regions and industries. The coronavirus outbreak is set to plunge the EU into the worst recession in its history. European Commission chief Ursula von der Leyen has proposed the creation of the EU’s first joint-debt mechanism to fund billions in handouts.
Under the German’s blueprint, eurocrats will borrow €500 billion on international markets before distributing the money as cash grants to the worst-hit countries, regions and industries.
A further €250 billion will be dished out in the form of low-cost loans.
The fund will leave the bloc’s taxpayers saddled with the debt burden of the coronavirus recovery, with the borrowing expected to be paid back over the next 38 years.
The Commission also wants to introduce new EU taxes, including a level on single-use plastics, a digital tax or a tax on multinationals, to help foot the bill.
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