Contributed by:

George Kallinicou

Contributed by:

George Kallinicou

German Chancellor Angela Merkel and French President Emmanuel Macron are showing the solidarity way to the rest of the EU leaders. The two powerhouses of EU have met on Monday the 29th June 2020 at the German government’s guest house of Meseberg Castle in Gransee near Berlin.

Both leaders understanding the opposing views and the increasing friction among the other member states, are trying to find a common path of understanding and to reach to a coronavirus rescue plan that all 27 members will agree to.

There is an extra incentive to Germany to push for an agreement as Germany takes over EU’s Presidency for the second half of 2020 and an agreement will reinforce their leading status.

On top of the European Commission plans for a Euro 750 billion fund made mostly of grands, the two leaders have agreed for Euro 500 billion recovery fund raised from shared EU borrowing, the so-called “Corona Bonds”.

It is argued that the opposing member states, Austria, Netherlands, Denmark and Sweden, have more to lose with a slow EU recovery compared to the grands and common EU borrowing. These nations have benefited most from the strength of the EU common market.

The final deal is expected to be reached by the end of July.

Emmanuel Macron stated characteristically that this is a “moment of truth” for the European Union. Angela Merkel added that the fund has to be substantial.

Both know that striking a deal will not be easy and they will need to use all of their charm but at the same time their power to achieve this.