AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.04 No Change ▼ 0.00 (0%)
BOP 6.67 No Change ▼ 0.00 (0%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.55 No Change ▼ 0.00 (0%)
DFML 41.44 No Change ▼ 0.00 (0%)
DGKC 86.85 No Change ▼ 0.00 (0%)
FCCL 32.28 No Change ▼ 0.00 (0%)
FFBL 64.80 No Change ▼ 0.00 (0%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 No Change ▼ 0.00 (0%)
HUMNL 14.68 No Change ▼ 0.00 (0%)
KEL 5.05 No Change ▼ 0.00 (0%)
KOSM 7.46 No Change ▼ 0.00 (0%)
MLCF 41.38 No Change ▼ 0.00 (0%)
NBP 60.41 No Change ▼ 0.00 (0%)
OGDC 190.10 No Change ▼ 0.00 (0%)
PAEL 27.83 No Change ▼ 0.00 (0%)
PIBTL 7.83 No Change ▼ 0.00 (0%)
PPL 150.06 No Change ▼ 0.00 (0%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 No Change ▼ 0.00 (0%)
SEARL 86.00 No Change ▼ 0.00 (0%)
TELE 7.71 No Change ▼ 0.00 (0%)
TOMCL 35.41 No Change ▼ 0.00 (0%)
TPLP 8.12 No Change ▼ 0.00 (0%)
TREET 16.41 No Change ▼ 0.00 (0%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.16 No Change ▼ 0.00 (0%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 10,010 Increased By 126.5 (1.28%)
BR30 31,023 Increased By 422.5 (1.38%)
KSE100 94,192 Increased By 836.5 (0.9%)
KSE30 29,201 Increased By 270.2 (0.93%)

France and Germany proposed Monday a 500 billion euro ($542 billion) fund to finance the recovery of the European Union's economy from the devastation wrought by the coronavirus crisis.

Putting aside past differences and seeking to prove that the Franco-German core of Europe remains intact, President Emmanuel Macron and Chancellor Angela Merkel announced the unprecedented package after talks by video conference.

With the European economy facing its biggest challenge since World War II, Macron also acknowledged that the EU had fallen short in its initial response to the virus and needed to coordinate more closely on health.

Financed by "borrowing from the market in the name of the EU," the money will flow to the "worst-hit sectors and regions" in the 27-member bloc, the two countries said in a joint statement.

"We are convinced that it is not only fair but also necessary to now make available the funds... that we will then gradually repay through several future European budgets," Merkel said.

Countries benefiting from the financing would not have to repay the money, Macron added, emphasising that the funds "were not loans."

The borrowing marks a major shift by Germany, which has until now rebuffed calls by Spain and Italy for so-called "coronabonds" for joint borrowing on financial markets to provide stimulus cash.

Germany, the Netherlands and other rich countries had seen them as an attempt by the indebted south to unfairly take advantage of the north's fiscal discipline. But Merkel said the seriousness of the crisis meant that "solidarity" must be the order of the day.

"The aim is to ensure that Europe comes out of the crisis more cohesive and with more solidarity," she said, calling the proposal "courageous."

European Commission chief Ursula von der Leyen, who would have to help implement the package, hailed the plan as a "constructive proposal."

"It acknowledges the scope and the size of the economic challenge that Europe faces," she said. European sources told AFP last week the Commission would lay out its plan toward the end of May, hoping both to reconcile the opposing objectives while proving that European solidarity is more than just a lofty slogan.

Copyright Agence France-Presse, 2020

Comments

Comments are closed.