The four "thrifty" members of the European Union presented their proposal for a support package to help the European Union overcome the crisis caused by the coronavirus pandemic, stressing that they reject any mechanism for pooling European debt.
The Netherlands, Austria, Denmark and Sweden, known as the "thrifty" four, are seeking emergency aid for the countries hit hard by the coronavirus in the form of one-time loans under favorable conditions to be approved over the next two years, according to a proposal published by the cabinet of Austrian Chancellor Sebastian Kurz.
According to the proposal, the borrowed money must be "focused on activities that contribute the most to recovery, such as research and innovation, strengthening the health sector and green transition."
President Francke Emanuel Macron and German Chancellor Angela Merkel presented a "difficult" 500 billion euro plan on Monday, the purpose of which is to revive the economy destroyed by the consequences of the covid-19 pandemic, through an unprecedented European debt pooling mechanism.
The fact that Germany joined the idea of a common debt is considered a crucial turning point in European cooperation, Hina agency reports.
But the "frugal" quartet still rejects any mutual pooling of national debt, believing that such a move would allow Europe's most undisciplined and weakest economies to profit from "cheaper" financing that would "fall" on the economically stronger countries of northern Europe.
In exchange for such assistance, the mentioned countries should undertake to implement far-reaching reforms, as well as to respect the adopted budgetary framework.
Representatives of the Netherlands, Austria, Denmark and Sweden believe that it will be necessary to adopt a measure of "protection of costs from fraud", in such a way that European prosecutors and all those responsible for the fight against corruption are included in the process.
The proposal rejects a potential "significant increase" in the EU budget, as foreseen in the Macron-Merkel plan.
Instead, the EU budget should be "modernized", and savings could be achieved through "redefining priorities in the sectors least contributing to the recovery".
In return, costs related to the consequences of covid-19 could be subsidized or temporarily increased. Considering the bleak economic forecasts for this year, "additional funds for the EU, despite the financing method, will burden state budgets even more strongly," the announcement of the four countries reads.
Next week, the European Commission is to present a stimulus plan for economic recovery after the crisis.
The proposal of the "thrifty" member states was immediately criticized on Saturday by the Italian Minister for European Affairs.
The severe recession that the EU is facing "requires ambitious and innovative proposals" because "the internal market and all the benefits it brings to Europeans are at risk," Minister Enzo Amendola wrote on Twitter.
"The 'frugal countries' document is inadequate. More courage (from the European Commission) is needed on May 27," Amendola wrote.
The Italian minister attached to his announcement a chart showing that the richer members, including the "thrifty" four, benefit more from the common market, while among those who benefit from the common market less than the EU average are mainly members from the south and east of Europe, which the EU's help is most needed.
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