EU Rescued by a Historic 750 billion Euro Recovery Fund
Posted on 22 July 2020; 00:30 AM IST. Last Updated 22 July 2020; 00:30 AM IST.Summary: The final agreement reached by the European leaders for a 750 billion Euro recovery fund could rescue European Union, from the devastation of the Novel Coronavirus (covid-19). The marathon discussions which spanned for almost 5 days, have brought rich dividends both in terms of finance, and EU solidarity. A quick EU recovery could bring lots of stability to many regions across the world.
The final agreement reached by the European leaders for a 750 billion Euro recovery fund could rescue European Union, from the devastation of the Novel Coronavirus covid-19. The recovery fund is about two thirds of the EU budget, and could bring the much needed stimulus to the southern member states.
The recovery fund is broken into a non repayable grant of 390 billion Euro, and a loan of 360 billion Euro. It was hailed as historic, since EU would operate the fund on behalf of the member states. The marathon discussions which spanned for almost 5 days, have brought rich dividends both in terms of finance, and EU solidarity.
The massive recovery fund is absolutely necessary, as many financial systems of southern states were weakened or broken beyond repair, by the novel coronavirus. A quick EU recovery could bring lots of stability to many regions across the world.
As per the agreements reached, the “rule of law” or democratic norms are a prequalification for the utilization of the grants. While the details of implementation of “rule of law” are yet to be cast into stone, this appears to be a good starting point and a golden chance (worth all the 390 billion Euros), to infuse a common set of principles for governance, in the member states of the European Union.
Historically, Europe paid a very great price and was even divided as Eastern Europe and Western Europe, due to the lack of common set of principles for governance and trade policies. If the current enthusiasm for European solidarity were to continue, Europe could truly rise to its full potential, and emerge as a great leader of the world.