EU adopts revolutionary stimulus to fight coronavirus recession

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Greece and other smaller economies still recovering from the last recession will also be hit hard by the recession. But the heavy indebtedness of many of these countries makes them reluctant to accumulate more debt, and their budgets are not sufficient to self-finance their collections. This led them to turn to the European Union for help.

With the European Central Bank’s extensive bond buying program, national stimulus packages worth trillions of euros and other smaller EU support programs for banks, businesses and workers, European leaders hope to reverse the recession in 2021 and work their way to a rapid and powerful recovery.

They also agreed on Tuesday on the Union’s ordinary budget for the next seven years: € 1.1 trillion to fund normal EU policies on agriculture, migration and hundreds other programs.

But the deal came at a cost in progressive goals tied to EU values ​​and standards. To involve Hungary and Poland, EU leaders have decided to dilute the caveat by making funding contingent on the rule of law criteria that illiberal governments in both countries violate.

In another concession to Poland, the nation’s most coal dependent in the bloc, a requirement was dropped that would have committed the country to be carbon neutral by 2050 to dip into part of the funds.

Since its creation, the EU has struggled between maintaining the sovereignty of nation-states and developing common federal-type structures.

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