“It would be better if we could reach an agreement before the summer break,” Angela Merkel said, calling for a compromise between member states to allow the transaction to be ratified by the end of the year.
“We have to act quickly and decisively,” she said.
The European Commission chief, Ursula von der Leyen, has proposed huge funds to help the EU get out of its deep-never recession, but the plan was immediately met with fierce opposition from fiscally conservative member states, including Austria and the Netherlands.
The proposed scheme consists of € 500bn in grants and € 250bn in loans, but requires unanimous EU approval.
“The starting position is far from easy, but I hope that all member states act in a spirit of compromise in the face of this unprecedented situation,” said Merkel.
“Cohesion and solidarity have never been more important than today. The crisis can only be overcome if we act for and with others, ”she said.
The European Council is due to hold a video summit on June 19 on the controversial European Union stimulus package, which is the largest to date.
However, a decision is not expected before the leaders met in person, said Merkel, whose country assumed the presidency of the EU in July.
The German chancellor at the end of May stunned observers by proposing alongside French President Emmanuel Macron the plan of € 500bn in subsidies to help the hardest hit members of the European Union to get their economy back on track.
This proposal, now, which make up the bulk of von der Leyen’s package, has broken a long German taboo as it included taking on debt-sharing, a dramatic about-face after years of German stubbornness. joint opposition of loans.