European Union finance ministers agreed a 500-billion-euro rescue for European countries hit hard by the coronavirus epidemic, but put aside demands from Italy and France for pooled borrowing.
The breakthrough came after the Netherlands softened its position on the crucial question of making countries in need commit to economic reform and outside oversight in return for assistance.
The Hague blocked the talks two days earlier by insisting that Italy, or any other country in need, deliver on governance targets — which Rome saw as a shocking demand during a health crisis.
As a compromise, the final statement clearly states that the rescue would be specifically earmarked for costs related to the COVID-19 crisis, which has killed more than 65,000 people in Europe. Germany has refused the pooled debt proposal and ministers agreed only to ‘explore’ the idea under the direction of EU leaders, who are set to meet later in the month.
In addition to the eurozone rescue fund, the EU ministers agreed 200 billion euros in guarantees from the European Investment Bank and a European Commission project for national short-time working schemes.
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