This archive report was first published on 14 July 2020.
On July 14, 2020, German Chancellor Angela Merkel expressed doubts about the European Union's ability to reach a consensus on a 750-billion-euro pandemic recovery fund at the upcoming summit.
Speaking ahead of the EU special summit, Merkel emphasized that the recovery fund 'must be massive' and not reduced in size, citing the enormity of the task at hand.
She stated, 'Because the task is enormous, the answer must also be huge,' and stressed the need for the fund to be 'particularly powerful' to signal Europe's commitment to unity during this challenging time.
While the European Commission officially proposed the recovery fund, Merkel and French President Emmanuel Macron had previously developed the plan's core components.
The proposed grants to EU countries hardest hit by the pandemic, such as Italy, have challenged Germany's long-held reputation as a 'frugal' nation.
However, other northern member states, including the Netherlands, Austria, Denmark, and Sweden, have pushed back against the plan, advocating for loans with tougher conditions instead of grants.
Italian Prime Minister Giuseppe Conte urged a swift agreement, warning that a delayed response would be ineffective.
