Daily Management Review

Portugal supports Germany, France's idea to create €500B fund


Head of the Eurogroup and the Minister of Finance of Portugal, Mario Centeno, supported the initiative of Germany and France to create a €500 billion fund for the restoration of the European economy. He said it in an interview with Welt am Sonntag.

Previously, the plan of France and Germany came across criticism of Austrian Chancellor Sebastian Kurz. Austria, Sweden, Denmark and the Netherlands on Saturday presented an alternative plan for the restoration of the European economy on the basis of loans, as opposed to the proposal of Germany and France to create a fund of €500 billion.

“The proposal of (German Chancellor Angela) Merkel and (French President Emmanuel) Macron was good news for Europe. This initiative is a bold step in the right direction to overcome this crisis,” Centeno said.

“We will see how it will function,” Centeno said, noting that this initiative could shape the Eurozone in the long run. "The German-French proposal would be a big step towards a fiscal union and a truly functioning monetary union, even though the recovery fund is temporary," he said.

Centeno called on European authorities to agree on the key elements of the fund by summer, but admitted that negotiations would be difficult.

source: welt.de