European leaders took a historic step towards sharing financial burdens among the EU’s 27 countries by agreeing to borrow and spend together to pull the economy out of the deep recession caused by the virus outbreak. To overcome resistance from five European countries led by the Netherlands, they trimmed the amounts to be dispensed as grants and increased the amount offered as loans that have to be paid back. Yet the trillions in financial support are starting to add up. It’s those bond purchases that have kept the virus crisis from turning into a financial crisis while EU leaders debated. “From a more negative perspective, the hard-fought compromise will have smashed some political porcelain and has not always sent a signal of strong unity.

Source: The Standard July 21, 2020 14:37 UTC