Germany, France to get more funds frum recovery deal

Germany, France to get more funds frum recovery deal

Only France and Germany will get more funds from the EU’s coronavirus recovery fund under a deal EU leaders stroke last week, Brussels-based think tank Bruegel claims.

FRANCE AND GERMANY HAVE MANAGED TO SECURE BIGGER SLICES

Italy, Spain, and Poland – the big beneficiaries of the European Commission’s original proposal – will lose in total €21.9 billion ($25.6 billion) compared to what was originally allocated, while Germany and France will benefit together €20.8 billion more in grants, according to the calculations of Zsolt Darvas, a senior researcher at the economic policy think tank.

The estimations suggest that France and Germany have managed to secure a considerably bigger slice of a shrinking cake during budget negotiations by presenting themselves as the deal-breaker or mediator in the conflict of the Mediterranean countries and the camp of the so-called Frugal Four.

Only Germany and France will get more from the overall recovery fund, €13.4 billion and €7.4 billion, respectively.

The three big winners of the previous proposal will benefit less. Italy, Spain, and Poland can expect respectively €1 billion, €9.5 billion, and €11.4 billion less from the recovery package.

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