Brussels presented reconstruction plans – The Corona-crisis makes the taboo of the possible EU-Commission presents on Wednesday its Plan for the Corona-reconstruction Fund, after Germany and France have prepared a taboo the way. Stephan Israel from Brüssel0 comment are ahead: German Chancellor Angela Merkel and French President Emmanuel Macron. Photo: Kay Nietfeld/Reuters

It is very a lot of money, but, above all, a taboo. The EU Commission should, for the first time can be a debt. The Corona-crisis makes it possible. Ursula von der Leyen, will present on Wednesday its Plan for the reconstruction Fund. The EU-Commission will hold 500 billion euros, and to the most affected member States can distribute.

There are special times. Normally, Brussels is proposing and the member States in a position then to find a compromise. This time, Angela Merkel and Emmanuel Macron are to renew in advance, and last week presented a German-French proposal for the so-called Recovery Fund. What provoked, in turn, Austria, the Netherlands, Sweden, and Denmark to a counter-proposal.

The fronts are already staked out. It comes after Germany and France, to flow the funds as non-repayable assistance. The four countries with Federal Chancellor of Austria, Sebastian Kurz at the top to warn of the “debt Union by the back door” and want to grant the funds only as loans. But the principle that the Brussels record, for the first time large amounts of money, and the EU budget as collateral can use, not even the critics of the German-French proposal.

Von der Leyen between the fronts

Commission President Ursula von der Leyen will position itself between the two fronts, suggest a mixture of grants and repayable loans. The ratio will be 60 to 40 percent or 70 to 30 percent. No Eurobonds or Corona-Bonds, although, because all member States would be liable according to their share in the common economic performance for the money, but it is a step in the direction of common debt.

If the President of the Commission building Fund for the member States and in the EU Parliament in the summer or at the latest, in the fall of brings the by could Ursula von der Leyen, after the many criticisms of their performance of duties in the Corona-crisis as a big success.

It’s about solidarity, but also self-interest.

This is the back in the Background that Merkel and Macron have helped her vigorously. The German Chancellor has written to the French President, has been campaigning since he took office a long time in vain for a stronger Integration of the Eurozone and greater European sovereignty. Both picked up on Angela Merkel now: “The national state today has no future.” The exceptional character of the crisis requires extraordinary steps, reasoned the Chancellor’s u-turn towards the joint debt.

never Waste a good crisis, say the cynics. Others speak of a Hamilton Moment. Thus, a crucial stage in the creation is meant the history of the United States, as in 1790, the us Treasury Secretary, Alexander Hamilton asserted that the Central government took over the debts of the States, and considerable financial and political skills won. Whether the comparison is true, to be able to historians to assess in a larger temporal distance. Currently it is not, however, explicitly provided that the old debts be taken over.

danger for the Euro and the internal market

it is Also still an open question whether the member States can agree unanimously on a compromise. Here, the amount is less important than the Signal, which will not leave southern Europeans alone. In the Euro crisis, had found Germany on the side of the other Northern Europeans, and against solidarity resisted. The Corona-crisis has deepened the divide between Northern and southern Europe now. A risk for the Euro and the internal market, of which the Northern European economies, with their export-oriented economies particularly benefit.

It is about solidarity but also of self-interest. The Chancellor is also likely to have the most recent judgment of the Federal constitutional court in mind, this could in the longer term, restrict the European Central Bank in its role as a fire brigade in the Eurozone. The Euro Central Bank has urged the member States no longer, to take more responsibility in crisis management.

A bridge between North and South

The group of “Frugal”, the Netherlands, Austria, Denmark and Sweden call themselves, must now do without Germany. For Merkel, the u-turn was possible because, unlike in the debt crisis, the devastation of the pandemic self-inflicted, but all member States are affected.

contrary to Germany, Italy, Spain or Greece, but have not alone in the game room, to save companies with generous state aid or economic stimulus programs toast. Together with France, Emmanuel Macron, Merkel has built the bridge between North and South. Driven by the concern that, without solidarity, the Eurozone apart could break.

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