The EU's coronavirus bailout plan could give Europe a federal future like the US - Business Insider

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The EU's coronavirus bailout plan could give Europe a federal future like the US

in May at which the pair made a proposal so radical it could determine the fate of the European Union.

Politically, it is seismic. Merkel and Macron, who have never seen eye-to-eye on EU integration, have emerged as a unified front. Germany has abandoned its decades-long refusal to allow any government borrowing to support struggling EU members, instead adopting an arms-wide embrace of collective debt

"Of course the fund will be temporary and targeted, it's been said very clearly," he told Business Insider. "But nevertheless, the proposal as it is formulated is very normative." It represents a potential centralisation of Brussels power which some member states have long been pushing for, and which others remain deeply sceptical of, with power significantly more focused in Brussels.

"You're setting up the precedent and to some extent the mechanisms for achieving that. Then it's just a question of the political will and necessity to do that." "We have set out our position clearly: countries that are bailed out will have to say what they will do to make sure this situation does not arise again," he said.

 

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