Merkel-Macron rescue fund an ‘austerity trap’

Following yesterday’s Franco-German proposal for a €500bn EU recovery fund through shared borrowing in the financial markets, Co-Presidents of the GUE/NGL group in the European Parliament said that while this represents a qualitative change from past proposals, it is largely insufficient given the magnitude of the challenge. 

Manon Aubry

“The amount proposed by France and Germany to support member states during the crisis dwarves the €2 trillion the European Parliament demanded as adequate for a recovery that meets the needs of citizens. 

“Most worryingly, the proposed recovery fund comes with macroeconomic conditionalities, in other words, more austerity and privatisations. Member states will have to pay off the debt in the end, which will put an additional burden that they won’t be able to cope. 

“This shows the EU has learnt nothing from the 2008 financial crisis and the tremendous suffering its policies have inflicted on citizens.”

Martin Schirdewan

“The proposal is disappointing as it falls short of addressing the most urgent needs and future challenges facing the EU: the social, ecological and digital transition.” 

“It lacks the courage to leave behind the pandemic of austerity once and for all.”

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