Berlin and Paris Presented a 500 billion euros EU Economic Recovery Plan

The European Commission is proposed to borrow in the financial markets 500 billion euros under EU guarantees. Brussels will distribute these funds to the countries affected by the pandemic. Reimbursement is planned from the budget of the European Union. German Chancellor Angela Merkel and French President Emmanuel Macron presented on Monday, May 18, the EU countries economic recovery European program after the coronavirus pandemic. It is 500 billion euros, which will be obtained in loans form on world financial markets under the guarantees of the European Union. Then this money is to be paid during many years to the affected EU countries as non-repayable tranches. Reimbursement of these expenses is planned for 20 years from the budget of the European Union, the main donor of which is Germany. “Our goal is for Europe to emerge out of this crisis stronger, more united and more solidary,” Merkel said, stressing that to overcome the pandemic consequences, a “one-time and extraordinary effort” is needed, and that France and Germany are ready for. To approve the assistance program, it is necessary to obtain the consent of all 27 EU countries. European Commission President Ursula von der Leyen welcomed France and Germany decision as one of the three pillars of economic recovery in the EU, in addition to the states' own efforts and the already approved 540 billion euro credit program of the European Union. "These programs will allow countries and business representatives to withstand the crisis and launch a vast investment program that is necessary to returning the European economy to the rails," she said.