The Recovery Fund #76

Deepnews Digest #76

The Recovery Fund

Editor: Christopher Brennan
While worries about the extent of a second wave persist, leaders in some parts of the world are looking to how they build back. In a return to normal, the heads of state for the European Union are gathering today and tomorrow for their first face to face meeting since the pandemic. This week’s Digest covers the summit in Brussels and the EU recovery more broadly, with questions over whether countries hard hit by the coronavirus can persuade the “Frugal Four” to help fund a pan-European effort to keep their economies afloat.
We think that Deepnews, providing in-depth information rather than whatever is deemed clickable, has something to offer as we move into the post-COVID world. In addition to this Digest, we have also started five new newsletters that touch on the economic and social aspects of the crisis. Travel, Education, Economic Recovery, Cities, and Gen-Z to Boomers, which explores the similarities and differences between generations. Check them out and let us know what you think. It would also mean a lot to us if you could spend less than 2 minutes to take our survey on what you want from news.
Published every Friday

The Guardian

The world needs grown-up leadership. Time for Germany to step up

With Germany at the EU helm, there’s a unique chance for Europe to fill the vacuum left by the retreating US.

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The Conversation

Coronavirus recovery – lessons from the eurozone crisis

As governments around the world grapple with the public health and economic effects of the COVID-19 pandemic, there are striking similarities with the eurozone crisis that followed the 2008 financial crisis.

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Editor’s Note:

This is of course not the first economic crisis that Europe has handled. Here researchers look at the eurozone crisis and explain what is different this time. – Christopher Brennan, Editor

Bloomberg

Europe eyes public stakes in small firms to reduce risk of bankruptcies

The European Union Commission warned a rise in bankruptcies could lengthen the pandemic shock and as much as €720bn will be needed to ensure the survival of EU firms this year.

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Financial Times ($)

Spain looks for jobs boost from EU pandemic recovery package

Madrid fears a repeat of the surge in unemployment a decade ago, but hopes €80bn of recovery funds will help.

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Bruegel

The EU’s Opportunity to Turn Its Markets Toward the Future

The EU is newly looking to harness financial markets for good on its recovery path out of the COVID-19-caused recession. Germany’s U-turn from abhorring public debt to ramping it up for a good cause has given momentum to a continental shift that may lead, for the first time, to joint EU borrowing at scale. EU leaders now are considering a sizeable aid fund that would allow the 27 member states to borrow jointly, harnessing their collective reputations to raise private-sector money for the recovery effort.

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The New European

Embattled Europe must take a stand

Europe has never been more alone or more in danger. Shorn of the awkward squad, the Brits, it has a perfect moment to establish itself, once and for all, as a major power and a major voice in the world. Will it do it?

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EU Observer

[Opinion] Italy has a responsibility, too

Although Spain has surpassed it in total number of cases, Italy has had the highest death toll. Its economy is projected to shrink 11 percent this year compared to 8.3 percent for the EU as a whole.

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Editor’s Note:

One of the hardest hit countries in the EU has been Italy, with the first major outbreak in Europe. Here Nick Ottens looks at one of the bloc’s major economies and what to expect going forward. – Christopher Brennan, Editor

Atlantic Council

European leaders prepare for crucial coronavirus financial compromise

On July 17, and most likely going into the weekend, European leaders will meet at a special European Council summit to discuss a proposed €750 billion economic recovery package, and details of the EU’s next seven-year, €1.1 trillion budget. Over the past few weeks and driven in part by the determination of the incoming German EU presidency, momentum in working level negotiations has cleared the way for a breakthrough at the summit.

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Euractiv

Recovery money is not a gift, says Italy’s EU ambassador

The EU’s proposed €750 billion recovery fund should not be seen as a gift to EU member states. Rather, it is a financial instrument to fund the greening, digitalisation and competitiveness of the European economy, Italy’s Permanent Representative to the EU, Maurizio Massari, told EURACTIV in an interview.

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Reuters

Coronavirus ‘Class of 2020’: Europe’s lost generation?

When Dunia Skaunicova graduated in media marketing from Prague’s Metropolitan university she quickly found a dream first job at a startup in the Czech capital, where companies were fighting to snap up multi-lingual graduates.

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Financial Times ($)

EU recovery-fund fight is about shaping the bloc’s future

About a year ago, EU policymakers sketched out plans for a €100bn investment fund aimed at promoting European industrial champions in sectors, especially digital technology, where US and Chinese companies lead the way.

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The Guardian

Revealed: Italy’s call for urgent help was ignored as coronavirus swept through Europe

Exclusive: A litany of failings meant that when Italy faced disaster, its distress call to the EU met with a shocking silence.

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Editor’s Note:

While the summit is looking forward, some are also looking backward at what happened earlier this year. Here a team from the Guardian reports on Italy’s calls for aid as it became a center of the pandemic. – Christopher Brennan, Editor

Associated Press

So much money, so little time to find deal at EU summit

As European Union leaders start pouring in early for a two-day summit starting Friday, all realize that rarely so much has been on the line.

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Euronews

Going Dutch: Netherlands has ‘frugal’ approach EU recovery package

As EU leaders gather in Brussels for the first time since the coronavirus pandemic started, they all agree that they need to reach a decision on the trillion-euro EU recovery package.

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Deutsche Welle

Germany finds new coronavirus generosity ahead of EU summit

In the past, Germany helped impose a tough austerity program throughout Europe. Now Angela Merkel’s government has come out in favor of debt-financed donations to EU partners. What has sparked this new generosity?

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POLITICO

How to watch the European Union budget summit like a pro

No journalists, no handshakes and a €1.82 trillion question.

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Christian Science Monitor

With $2.1T to split, EU leaders ditch webcams for live summit

While French President Emmanuel Macron is arriving early for the EU’s first face-to-face summit since February, Ms. Merkel will wait until the official kickoff on July 17.

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Independent (Ireland)

If Merkel can steer the EU through the next six months her legacy is assured

And she particularly wants to secure a European recovery fund to respond to the coronavirus crisis, a new EU long-term budget for the 2020s, and a post-Brexit UK-EU trade deal.

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Editor’s Note:

The meeting of EU leaders is also one that affects each of them personally. Here is a look at Angela Merkel, whose country has just assumed the rotating EU presidency, and this as a potential moment for her. – Christopher Brennan, Editor

RTE (Ireland)

Donohoe to push for changes to EU Covid recovery fund

The Minister for Finance, Paschal Donohoe has said he will be pushing for changes to the EU Covid-19 recovery fund so countries like Ireland might receive more funding.

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EU Observer

[Opinion] Spanish vs Dutch views on the EU Recovery Fund

The Netherlands and Spain are at opposite ends of the debate about the EU’s recovery package. But they must realise they are in the same boat.

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