French President Emmanuel Macron warned that the European Union might collapse as a “political project” if it doesn’t support affected economies like Italy, which has been struggling with the COVID-19 pandemic and its economic consequences.
Macron told the Financial Times that the EU had to establish a common fund that could issue common debt with a common guarantee. The fund should be used to finance EU countries based on their necessities rather than the size of their economies. Germany and Netherlands are not welcoming this idea.
The French president hinted that the bloc faced a moment of
truth in making up its mind whether it was more than just a single economic market.
The lack of solidarity during the coronavirus outbreak might result in populist
anger in countries like Italy and Spain. Macron said:
“If we can’t do this today, I tell you the populists will win — today, tomorrow, the day after, in Italy, in Spain, perhaps in France and elsewhere.”
France is promoting the creation of a common European fund
or EU budget allocation worth 400 billion euro on top of the emergency help
already provided by the European Central Bank and other institutions.
Italy, Spain, and other EU members are supporting the
initiative, but Germany and other northern countries are opposing the idea of
mutualising debt.