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HEALTH

Macron and Merkel propose €500 billion plan to relaunch EU economy

France and Germany on Monday proposed a €500 billion recovery fund to finance the relaunch of the European Union's economy, which is facing the biggest economic crisis since the World War II because of the coronavirus pandemic.

Published: 18 May 2020 18:09 CEST

Financed by “borrowing from the market in the name of the EU”, the fund will flow to the “worst hit sectors and regions” in the 27-member bloc.

Countries benefiting from the financing would not have to repay the sum, said France's President Emmanuel Macron. 

“What is sure is that these €500 billion will not be repaid by the beneficiaries,” he said at a joint video news conference with Chancellor Angela Merkel.

“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,” said Merkel.

The borrowing would not amount to the so-called “coronabonds” sought by Italy and Spain because it would be made and repaid under the framework of EU budgets, rather than a direct mutualisation of debt by member states.

But it nevertheless marks a major shift by Germany, which has until now rebuffed talk of common borrowing.

Germany, the Netherlands and other rich countries had long seen coronabonds 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,” said Merkel, calling the proposal “courageous”.

 

'Constructive'

EU chief Ursula von der Leyen on Monday hailed the plan proposed by France and Germany to relaunch the
bloc's economy.

“I welcome the constructive proposal made by France and Germany,” said Von der Leyen who is head of the European Commission, the EU's executive arm that would implement the plan.

“It acknowledges the scope and the size of the economic challenge that Europe faces,” she said.

“This goes in the direction of the proposal the commission is working on which will also take into account the views of all member states and the European Parliament,” Von der Leyen said.

The joint stance by France and Germany is significant as it will put pressure on the EU's more frugal minded member states to contribute the extra money needed to pay for the plan.

The €500 billion will come in addition to the EU's normal spending plans for 2021 through 2027, which are currently under negotiation.

Europe has seen some of the worst effects of the pandemic, with highly indebted countries such as Italy and Spain calling for help from richer partners such as Germany and the Netherlands.

Those countries are reluctant to get into a major borrowing scheme with their southern partners that are seen as overspending and reluctant to implement necessary economic reforms.

“It is going to take willingness to reach an agreement and everyone is going to have to shift their positions,” a European official said on condition of anonymity.

The latest statements by German Chancellor Angela Merkel “will help”, the source added.

Member comments

  1. Wow, what a great plan! Borrow in the market, no doubt millions of EUs will find their way into the pockets of middlemen, then lend it to already indebted nations. Whose corrupt politicians and mafia will skim a good portion. Furthermore, why don’t they wait a few more months to act, so Italy, Spain, and Greece can sinker deeper in debt? Many knew the EU was inept, except in dictating policies, immigration rules, and inane laws, but this crisis has shown how utterly corrupt they are. Germany, France, and Holland acted like Jackals instead of a single union. Hopefully, this will quicken the demise of the EU, and a replacement will be created, which does two things – makes trade more efficient and border crossings for EUROPEANS and Visa holders seamless.

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DRIVING

EU countries to extend range of offences foreign drivers can be fined for

The EU has agreed to extend the number of driving offences for which motorists from other member states can be fined for and to make it easier for authorities to chase up the fines and make foreign drivers pay.

Published: 13 May 2024 17:28 CEST
EU countries to extend range of offences foreign drivers can be fined for

In the last voting session of this term, in April, the European Parliament passed new rules to ensure drivers who breach local traffic rules in another EU member state are found and fined.

The cross-border enforcement (CBE) directive was first adopted in 2015 after it was found that non-resident drivers were more likely to commit speeding offences. The European Commission estimated that in 2008, foreign drivers accounted for about 5 percent of road traffic in the EU but committed around 15 percent of speeding offences.

The directive partially improved the situation, but according to the Commission 40 percent of traffic violations committed in other EU countries are still unpunished “because the offender is not identified or because the fine is not enforced”.

In March 2023, the Commission therefore proposed updating existing measures.

New rules extend the type of offences that will trigger assistance from another member state and seek to improve collaboration among national authorities to identify and fine offenders.

The European Parliament and Council agreed in March on the final text of the directive, which is now being formally approved by the two institutions.

André Sobczak, Secretary-General at Eurocities, a group representing European cities in Brussels, said: “While the final outcome of the discussions is not ideal, we are pleased that EU policymakers have at least put the issue of the enforcement of local traffic rules on foreign vehicles on the table. As we approach an election year, I believe such a practical example can demonstrate why a European approach is necessary to address local issues.”

Which traffic offences are covered?

The previous directive covered eight driving misconducts that would require member states to cooperate: speeding, not wearing seat belts, failing to stop at a red traffic light, drink-driving, driving under the effect of drugs, not wearing a helmet (motorcycles / scooters), using a forbidden lane and using a mobile phone or other communication devices while driving.

The Commission proposed to add to the list not keeping a safe distance from the vehicle in front, dangerous overtaking, dangerous parking, crossing one or more solid white lines, driving the wrong way down a one way street, not respecting the rules on “emergency corridors” (a clear lane intended for priority vehicles), and using an overloaded vehicle.

The Parliament and Council agreed to these and added more offences: not giving way to emergency service vehicles, not respecting access restrictions or rules at a rail crossings, as well as hit-and-run offences.

Despite calls from European cities, the new directive does not cover offences related to foreign drivers avoiding congestion charges or low emission zones. In such cases, information about vehicle registration can only be shared among countries with bilateral agreements.

Karen Vancluysen, Secretary General at POLIS, a network of cities and regions working on urban transport, called on the next European Commission to take other local traffic offences, such as breaches of low emission zones, “fully at heart”.

Collaboration among national authorities

For the traffic violations covered by the directive, EU countries have to help each other to find the liable driver. The new directive further clarifies how.

Member states will have to use the European vehicle and driving licence information system (Eucaris) to get the data of the offender.

National authorities will have 11 months from the date of the violation to issue the fine to a vehicle from another EU member state. However, they will not have to resort to agencies or private entities to collect the fine. This was requested by the European Parliament to avoid scams or leaks of personal data.

Authorities in the country of the offender will have to reply to requests from another EU member state within two months.

When the amount of the fine is more than €70, and all options to have it paid have been exhausted, the member state where the violation occurred can ask the country of the offender to take over the collection.

The person concerned will be able to request follow-up documents in a different official EU language.

When will the new rules will be enforced?

Now that the EU Parliament has passed the law, the EU Council has to do the same, although there is no date set for when that will happen. Once the directive is adopted, EU countries will have 30 months to prepare for implementation.

Last year the Commission also proposed a new directive on driving licenses, but negotiations on the final text of this file will only take place after the European elections.

This article has been produced in collaboration with Europe Street news.

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