Out in the Nick of Time
As part of the Brexit negotiations, Brussels asked the UK to contribute extra amounts to the EU's emergency coronavirus fund. The answer was no.
Brussels will however redirect contributions paid in by the UK to the emergency coronavirus fund holding about €3bn in total. A European Commission official said the UK remains "fully liable to contribute to — and fully eligible to benefit from — the Emergency Support Instrument." Only one problem, Britain doesn’t qualify to receive any money. The UK contribution so far is said to be just over €200 million.
Cash-cow Britain who has been milked by the EU for so many years will not be paying toward the COVID-19 Recovery Fund of €750bn.
€750 billion EU COVID Recovery Fund agreed
After 90 hours of negotiations, the frugal 4 became the frugal 5 and the whole palaver to give those countries who've mismanaged their economies for years free money was complete. Member states who didn’t fall in line with the EUs (Merkel/Macron) plan, were shamed into it by suggesting they were ‘cheapskate’.
France and Germany have successfully pushed their plan through to create a €750bn COVID-19 recovery fund available to those countries hardest hit by the disease. Discussions were really only about the split between free money and loans. The initial 500/250 split finished off as 390/360 split after 90 grueling, table thumping, nerve tearing emotional hours of negotiations over 4 days.
Although the money is raised through the ECB, it’s underwritten by the individual member states which is a first for the EU. The conditions to get your hands on the free cash are very vague and more to do with producing less CO2 than upholding democracy or using the money to boost the economy.
Funds will be available from January 2021 to 2023.
The EC Commissioners of Austria, Sweden, Finland, Denmark and the Netherlands (the cheapskate 5) cheered the result of their hard work through gritted teeth on day 5. Back home though, they will be facing the music for their actions as disillusionment in the EU grows.
Who Doesn't Want Free Money?
With such a large pot of free cash, I don’t think the €360bn available in loans will see many takers.
Hungry and Poland seem very happy with the outcome although agreement was tied to the bloc’s contributions over the next seven years which will amount to €1,100,000,000,000 from all member states.