Four EU countries counter bloc’s plan for alternative emergency fund

BRUSSELS: The opposition to plans for the EU to collectively finance its response to the coronavirus recession is taking shape after four members proposed a temporary fund for emergency loans as an alternative.

In a joint paper, the leaders of Austria, Denmark, Sweden and The Netherlands reiterated their opposition to debt and direct grants and to an increased EU budget, countering the initiative set out by German Chancellor Angela Merkel and her French counterpart Emmanuel Macron.

“Our objective is to provide temporary funding through the MFF and to offer favourable loans to those who have been most severely affected by the crisis,” the four countries wrote.

The MFF, or Multiannual Financial Framework, refers to the EU’s seven-year budget.

Countries like Italy and Spain have been banking on the EU’s recovery fund. The European Commission, the EU’s executive arm tasked with formulating a blueprint, will present its plans on May 27. BLOOMBERG