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France և Germany is planning billions to spend on rebuilding the epidemic

Frankfurt, Germany (AP) – France և Germany together projected billions in expenditures from the EU Epidemic Rehabilitation Fund to promote the use of digital technology in the economy.

The finance ministers of the two largest EU economies on Tuesday reiterated their joint determination to use spending to transform Europe’s economy to grow the continent again as it lags behind the United States and China in the wake of the epidemic.

According to the fund’s resolution, France should receive about 40 billion euros ($ 48 billion), while German Finance Minister Olaf Scholz said his country plans to spend about 28 billion euros ($ 36 billion). Scholz said half of the money would go to environmentally friendly projects and a quarter to the spread of digital technology. He said the foundation was based on internal aid promotion measures already adopted by the German government.

He called the foundation “a turning point for Europe.”

French Finance Minister Bruno Le Maire has called on the European Commission, the European Union’s executive branch, to speed up plans to launch a € 750 billion ($ 906 billion) fund in early July, saying the United States and China are recovering faster. He said that “we have lost too much time” after the foundation was approved, that “Europe must stay in the race”. The French economy shrank 8.3% last year amid a viral crisis, the worst since World War II, according to the INSEE National Statistics Institute.

More about the COVID-19 epidemic

They said that the new debts, which are financed by the total debt, will be avoided in 2008-2009. One of the mistakes made in the wake of the global financial crisis recession, when countries paid too much attention to spending cuts to close the deficit. Le Moer said: “The priority today is clearly to make massive investments, not to consolidate public finances. We have learned from the past. “

The Spanish Cabinet of Ministers also approved its proposal on how it wants to invest in the restoration. Spain, which has been hit hard by the epidemic, plans to receive 140 billion euros ($ 166 billion), half of it in direct payments and the other half in loans from the EU recovery program, which is second only to Italy. In line with EU priorities, the Spanish left-wing government has placed great emphasis on creating a greener economy, while boosting the productivity of the economy, which fell by 11% last year.

The fund, agreed in July 2020, comes under pressure from Brussels to address issues identified by the European Commission’s review of member states’ economic policies. For example, Spain is being asked to review labor laws, tax practices and pensions. Countries with low tax regimes, such as Ireland or Cyprus, are under pressure to prevent aggressive tax planning by multinational corporations.

Italy’s € 221.1 billion ($ 267.3 billion) recovery plan includes steps to delay litigation, which is seen as a business hurdle that cannot resolve trade disputes quickly.

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Sylvie Corben informed from Paris.

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