Eurogroup to Seek Compromise on the EU Package to Address Coronavirus Impacts

Αssociated press

(AP Photo/Virginia Mayo, File)

ATHENS - The Eurogroup, which will hold a video conference meeting next Tuesday, April 7, will seek a compromise on the European package of measures to address the major economic impact of the coronavirus.

Following Germany and the Netherlands' rejection of the proposal of nine eurozone countries, including Greece, to issue a corona-bond, the Eurogroup will seek a compromise though the increase in EU funding from existing institutions - the European Stability Mechanism (ESM), the European Commission and the European Investment Bank (EIB).

The European Commission on Thursday announced its proposal to issue bonds of 100 billion euros to lend to countries, depending on the extent of the crisis they are facing, in order to support the income of workers affected by the crisis as well as the income of the self-employed.

The European Investment Bank has proposed a 40 billion euro increase in low-interest loans to support troubled companies. It has also proposed the creation of a pan-European guarantee fund to provide 200 billion euros in additional funding for eurozone businesses.

The European Stability Mechanism has proposed granting precautionary credit lines to member states, with an initial amount of 2 pct of their GDP, using part of the 410 billion euros it raises from bonds.