EU ‘frugals’ formally oppose Macron-Merkel plan

EU ‘frugals’ formally oppose Macron-Merkel plan
Above, people sit at the terrace of Cafe Gavlen after it reopened in Copenhagen on May 18, 2020. (AFP)
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Updated 24 May 2020

EU ‘frugals’ formally oppose Macron-Merkel plan

EU ‘frugals’ formally oppose Macron-Merkel plan
  • Austria, the Netherlands, Denmark and Sweden, wants emergency help for badly affected countries to take the form of one-off loans

VIENNA: EU member states Austria, Sweden, Denmark and the Netherlands stated their opposition on Saturday to a French-German plan for a €500 billion ($545 billion) coronavirus recovery fund that would issue grants, calling for a loans-based approach instead.

French President Emmanuel Macron and German Chancellor Angela Merkel made the surprise proposal on Monday to set up a fund that would offer grants to EU regions and sectors hit hardest by the pandemic.

The idea of grants, however, is anathema to the EU’s self-styled “frugal four,” who generally oppose big spending and fear the proposal will lead to a mutualization of member states’ debt.

“We propose to create an Emergency Recovery Fund based on a ‘loans for loans’ approach,” the four countries said in a so-called “non-paper” outlining their position to other member states and released by Austria.

The two-page document listed principles they wanted the fund to adhere to, including “not leading to any mutualization of debt” and that it be of a “temporary, one-off nature with an explicit sunset clause after two years.”

Paris and Berlin, whose agreements often pave the way for broader EU deals, proposed that the European Commission borrow the money on behalf of the whole EU and spend it as an additional top-up to the 2021-2027 EU budget that is already close to €1 trillion.

The European Commission is to present its own proposal for a recovery fund linked to the EU’s next long-term budget on May 27 and said it welcomed the initiative from France and Germany.

But the document from the “frugal four” said the Commission predicts member states will suffer an “unprecedented economic contraction in 2020.”

“Additional funds for the EU, regardless of how they are financed, will strain national budgets even further,” they said.


Saudi ports container handling rises 6% in December

Saudi ports container handling rises 6% in December
Updated 43 min 48 sec ago

Saudi ports container handling rises 6% in December

Saudi ports container handling rises 6% in December
  • The total cargo tonnage handled at Saudi ports in December 2020 reached more than 26 million tons
  • This increase comes as a result of the current development processes that includes raising the level of operational and logistical performance and enhancing the competitiveness of the services provided to beneficiaries

Saudi ports saw an increase of 6 percent year-on-year (YoY) in the number of containers handled in December 2020 to 631,000 twenty-foot equivalent unit (TEU).

The total cargo tonnage handled at Saudi ports in December 2020 reached more than 26 million tons, via 1,032 vessels, according to the monthly statistical bulletin of Saudi Ports Authority (Mawani).

The total vehicles cargo reached 89,000, while livestock cargo rose by 18 percent to reach more than 173,000.

This increase comes as a result of the current development processes that includes raising the level of operational and logistical performance and enhancing the competitiveness of the services provided to beneficiaries, in addition to developing quays and raising the capabilities of the infrastructure and capacities in such a vital sector, thus fulfilling the requirements of development, the national economy and global supply chains, Mawani said.