Matthew Lynn Matthew Lynn

Europe’s coronavirus rescue fund is dead on arrival

Emmanuel Macron and Angela Merkel (photo: Getty)

Just imagine what would happen if real money was at stake. Over the last four days, the leaders of the European Union have been furiously haggling over their Coronavirus Rescue Fund. France’s President Macron has been banging the table angrily, the Dutch have taken on the role vacated by the British of the ‘bad Europeans’, and the Germans have been cautiously digging into their wallets to pay for the whole thing. In the end, however, they came up with a deal.

Arch-federalists will hail this as a ‘Hamilton Moment’ – a decisive step towards a more united Europe where the richer states help rescue the poorer, distributing money around the continent in a moment of ‘solidarity’. And while there is an element of truth in that – the EU will, for the first time, borrow money itself – no one should fall for the hype. In truth, the Recovery Fund is likely to be dead on arrival.

Matthew Lynn
Written by
Matthew Lynn
Matthew Lynn is a financial columnist and author of ‘Bust: Greece, The Euro and The Sovereign Debt Crisis’ and ‘The Long Depression: The Slump of 2008 to 2031’

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