EU proposes $825-billion coronavirus recovery fund

The EU’s executive is proposing a 750 billion-euro ($825-billion) recovery fund to help the bloc’s economy through the deep recession induced by the coronavirus pandemic, commissioner Paolo Gentiloni said Wednesday.

Gentiloni, who is in charge of economic affairs at the commission, wrote in a tweet that the move is “a European turning point to face an unprecedented crisis.”

However, the 27 nation EU remains deeply divided over what conditions should be attached to the funds, and Wednesday’s proposal from the EU’s executive arm is likely to set off weeks of wrangling.

The move comes with the world’s biggest trading bloc set to enter its deepest-ever recession as the impact from the coronavirus ravages economies. Virtually every country has broken the EU’s deficit limit as they’ve spent to keep health care systems, businesses and jobs alive.

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