Europe’s Frugal Four Are Right About Two Things
Sweden and Denmark would be right to ask why a recovery fund is EU-wide, and Austria and the Netherlands are right to worry about how it will be spent.
Back to economic normality?
Photographer: Emanuele Cremaschi/Getty Images EuropeThe European Commission’s plan for a 750 billion-euro ($842 billion) fund to deal with the economic consequences of the pandemic is a quantum leap in Europe’s crisis response. Yet, for all the good intentions, political leaders still have to agree on the details of the scheme.
The European Council — a gathering of prime ministers and presidents — will meet on Friday to discuss the plan, although most observers only expect a breakthrough to happen in July. The EU is still wrestling with the opposition of the so-called frugal four: Austria, the Netherlands, Sweden and Denmark. The countries’ leaders penned a letter to the Financial Times this week, expressing their doubts over several aspects of the proposal, including the fact that a chunk of the money will come as grants.