Merkel Open To A Larger EU Budget And Bonds To Finance Recovery After The Crisis

Merkel Open To A Larger EU Budget And Bonds To Finance Recovery After The Crisis

German Chancellor Angela Merkel indicated her willingness to fund Europe's economic recovery from the coronavirus disease outbreak through a larger EU budget and joint debt issuance through the EU commission.

Asked if she endorsed measures to help fellow European countries badly hit by the outbreak such as Italy and Spain through the European Union budget and EU bond issuance, Merkel said an European Union treaty article already allowed certain intervention and was used to fund a European short-term working system.

“I can imagine such instruments further down the line,” Angela Merkel said.

“More generally I would like to say that Germany not only wants to act in solidarity, but that it will act in solidarity.”

Merkel stressed that such a act of solidarity would take place within the guidelines of existing European agreements but reiterated her slogan that the well-being of Germany depended on well-being of its European allies. 

And this situation was not a result of national economic policy mistakes or other domestic decisions, said the conservative leader of Europe's largest and richest country. 

Merkel said the next European Union budget will be a lot better and larger than the one debated before the coronavirus outbreak exploded.

German Chancellor said that, “Of course it must be kept in mind that all countries, all member states of the European Union got into this situation through no fault on their own. This is a pandemic.

And she also indicated that Germany would be open to changes to European Union agreements if this would speed efforts to restore economies, but warned that it would take too long for such a process. “One can discuss new treaties but this would take two or three years to find solutions,” Merkel said.

Photo: German Chancellor Angela Merkel.