Reuters: EU ministers fail to agree virus economic rescue in all-night talks.

To support economies burdened by coronavirus lockdowns, the EU has already suspended state aid limits and allowed member states to inflate their debt to spend more.

REUTERS

REUTERS

European Union finance ministers failed to agree in all-night talks on more support for their coronavirus-hit economies and their chairman said on Wednesday morning he was suspending the discussions until Thursday.

Diplomatic sources and officials said a feud between Italy and the Netherlands over what conditions should be attached to euro zone credit for governments fighting the pandemic was blocking progress on half a trillion euros worth of aid, Reuters said.

"After 16 hours of discussions we came close to a deal but we are not there yet," Eurogroup chairman Mario Centeno said. "I suspended the Eurogroup and (we will) continue tomorrow."

Read alsoNumber of confirmed COVID-19 cases worldwide tops 1.4 mln

The finance ministers, who started talks at 1430 GMT on Tuesday that lasted all night with numerous breaks to allow for bilateral negotiations, are trying to agree a package of measures to help governments, companies and individuals.

They had hoped to agree on a half-trillion-euro programme to cushion the economic slump and finance recovery from the pandemic, and turn a page on divisions that have marred relations as the bloc struggles with the outbreak.

But feuds emerged prominently again, one diplomatic source said: "The Italians want a reference to debt mutualisation as a possible recovery instrument to be analysed more in the future. The Dutch say 'no'."

An official who participated in the talks said at around 0400 GMT on Wednesday The Hague was the only one refusing to endorse a text that the ministers were expected to agree on to the get endorsement for a new set of economic measures from the bloc's 27 national leaders.

Issuing joint debt has been a battle line between economically ailing southern countries like Spain and Italy and the fiscally frugal north, led by Germany and the Netherlands, since the financial and euro zone crises began over a decade ago.

To support economies burdened by coronavirus lockdowns, the EU has already suspended state aid limits and allowed member states to inflate their debt to spend more.

But Spain, France and Italy say that is not enough and have cast the discussion about more support as an existential test of solidarity that could make or break the EU.

Further proposals under discussions include credit lines from the euro zone bailout fund that would be worth up to 2% of a country's economic output, or 240 billion euros in total. The conditions for gaining access to this money remain a sticking point.

Related news

Plane Carrying Iranian Professor Jailed In US Has Taken Off: Minister.

An Iranian professor imprisoned in the United States after being acquitted of stealing trade secrets has left the country and is on his way back to Iran, Foreign Minister Mohammad Javad Zarif said in...

China frustrated WHO by delaying coronavirus info, despite public praise: sources.

Despite the plaudits from the World Health Organization, China sat on releasing the genetic map, or genome, of the virus for more than a week after three different government labs had fully decoded the information.

1 55

Experts split on whether U.S. military use during George Floyd protests is lawful

Some legal experts say the president does indeed have the authority under the Insurrection Act of 1807 to dispatch the military in states that are unable to put down an insurrection or are defying federal law.

1 56

Trump «Tear-Gassed Peaceful Protesters, For A Photo» : Joe Biden.

US President Donald Trump spurred fresh outrage Monday after police used tear gas to clear protesters from outside the White House so he could pose for photographs at a nearby church damaged during...

World's Latest Billionaire Emerges From One Of Asia's Costliest Break-Ups.

A new female billionaire has emerged from one of Asia's most-expensive breakups. Du Weimin, the chairman of Shenzhen Kangtai Biological Products Co., transferred 161.3 million shares of the vaccine...

1 5

By continuing to browse World News (UAZMI), you acknowledge that you have read the Terms of Use and agree to the use of cookies