Eurozone finance ministers have approved a new stimulus package against the Coronavirus strike worth about half a trillion euros. After intensive talks over the past week, ministers shed light on three new aid programs, which together exceed the value of 540 billion euros ($ 591 billion).
European countries have been facing funding for weeks over some of the costs associated with the fight against pandemics. Northern European countries, traditionally more conservative on the fiscal side than those in the south, have been reluctant to accept calls for Coronabond, a financial instrument that would combine debt securities from 19 different countries. euro.
Member states had also come out with deep divisions to agree on the terms of a 240 billion-euro credit line, but that seems to have been exceeded last night. However, despite the progress, analysts note that notifications from the parties did not indicate the resolution of any of the issues on the table.
“The signal of mutual support is not as strong as it should be,” economists at Berenberg Bank said. According to them, “one of the reasons is that they did not resolve the dispute over joint bonds to finance a joint recovery fund.”