Frankfurt am Main (AFP) – Germany takes over the European Union’s six-month presidency Wednesday, with outgoing Chancellor Angela Merkel staking her legacy on an enormous financial restoration plan to assist the bloc address the coronavirus fallout.
Merkel’s final main position on the worldwide stage comes as the 27-member membership faces its deepest recession since World War II, triggered by a pandemic that has killed greater than 500,000 folks globally.
The disaster has galvanised Europe’s strongest chief who, with simply over a 12 months left in her remaining time period, has ditched her traditional wait-and-see strategy to name for “extraordinary measures” to climate the storm.
“Europe’s future is our future,” Merkel stated Monday as she stood beside French President Emmanuel Macron to push for a 750-billion-euro ($843 billion) coronavirus restoration fund.
The proposed fund would controversially be financed by way of shared EU borrowing and marks a surprising U-turn for Germany after years of opposition to debt pooling.
The EU’s rotating presidency is Merkel’s “last chance” to make her mark as considered one of Europe’s nice leaders, Der Spiegel weekly wrote, including that it was time for Germany to shoulder extra duty as the bloc’s largest nation and high financial system.
“For years the chancellor put off dealing with the chronic problems of the EU and the euro. Now, towards the end of her political career, she has the opportunity to make up for past mistakes,” Spiegel wrote.
There shall be no scarcity of challenges to sort out within the months forward.
Post-Brexit negotiations, a extra assertive China, rocky transatlantic ties, local weather change and the conflicts in Libya and Syria will all be jostling for consideration, even when the pandemic guarantees to dominate the agenda.
– ‘Extraordinary solidarity’ –
Germany kicked off its EU custodianship by projecting the phrases “Together for Europe’s recovery” onto Berlin’s iconic Brandenburg Gate late Tuesday.
After 15 years in workplace, Merkel is the bloc’s longest-serving chief and held the EU presidency as soon as earlier than, in 2007.
But the stakes are larger this time.
A primary main check will come at a July 17-18 EU summit, the place Merkel hopes leaders will attain an settlement on the 750-billion-euro rescue fund put ahead by European Commission president Ursula von der Leyen — Merkel’s former defence minister.
The cash is predicted to come back primarily within the type of grants for international locations hardest hit by the pandemic, such as debt-laden Italy and Spain.
But so-called frugal nations together with Austria and the Netherlands wish to reign within the spending and are insisting on loans reasonably than grants.
Merkel has urged holdout nations to “engage in an extraordinary act of solidarity”, warning that an uneven restoration may undermine the EU single market and find yourself harming stronger economies too.
“We hope we can find a solution, even if the road is still long,” Merkel stated at the press convention alongside Macron.
– Brexit warning –
The fund is predicated on an concept unveiled by the French-German duo in May, wherein the European Commission would elevate cash on the monetary markets to assist pay for the post-pandemic restoration in poorer member states.
If accepted, the rescue fund could be a milestone for EU unity.
It would even be a giant win for Berlin, and will ease among the lingering resentment from the eurozone debt disaster a decade in the past when Merkel’s authorities insisted on harsh austerity for struggling nations like Greece.
Another contentious difficulty that would outline Germany’s EU presidency is Brexit.
After weeks of standstill, Britain and the EU have resumed negotiations concerning the nation’s divorce cope with the bloc — which may nonetheless end in a tough Brexit at the tip of the 12 months.
In an interview with a number of newspapers final week, Merkel warned that Britain would “have to live with the consequences” of getting weaker financial ties with the EU.