The significance of the five-day European Council is not simply the sheer size of the €1.2 trillion stimulus to be given the EU economy but the unprecedented scale of the collective borrowing the union will undertake on world financial markets, to finance that recovery strategy. Of the €750 billion to be invested in post-pandemic economic recovery, an unprecedented €390 billion will be in grants, not repayable loans. [...]
To pay for the collective-borrowing programme, the summit also agreed—in principle—to new common taxes. These include levies on plastics and polluting imports and a digital tax. Although details remain to be agreed, this is a radical step towards an EU fiscal policy. [...]
The logic of what was agreed may, though, demand still further and more radical changes in future. The union will also have to decide whether the wind of change must sweep through the forthcoming Convention on the Future of Europe—and lead to major reforms of the EU constitution itself.
No comments:
Post a Comment