Dutch Prime Minister Says Provision Of EU's Financial Assistance Should Be Tied To Reforms

BERLIN (UrduPoint News / Sputnik - 10th July, 2020) Dutch Prime Minister Mark Rutte on Thursday ahead of the meeting with German Chancellor Angela Merkel in Berlin said that the provision of financial assistance from the future EU's economic recovery fund should be tied to reforms, which are opposed by the southern European countries, as well as Germany.

"For all member countries, it would be a better option if they could mitigate the economic consequences [of the coronavirus pandemic]. Germany does it, the Netherlands does it. But Germany and the Netherlands can further develop well only if the entire European Union is developing well, since in Europe, all our economic systems � not only in the EU, but all � are very closely connected with each other, so we will negotiate the economic recovery fund in the European Council next week," Rutte said.

The minister also noted the importance of creating such a fund, adding that it should be associated with economic reforms "so that all EU member states are strong." At the same time, Germany opposes linking financial assistance with reforms, as do southern European countries, which had to go for reforms in exchange for assistance from other EU countries as a result of the 2009 debt crisis.

"We will also discuss long-term financial framework [the EU budget], which is also very important for restoring the EU economy. It will also outline the directions for future development. In any case, we can emphasize that the EU must handle money frugally, we do not want the net contribution [to the budget] to grow due to the Brexit and the coronavirus crisis, so we must make decisions. We are for a green Europe, a digitalized Europe, but for a Europe that holds fast to its values, such as the rule of law with certain rules of the game that are respected everywhere. Only this way can we restore the potential for economic growth," Rutte added.

On July 17-18, 27 EU leaders gather in Brussels for their first in-person summit to discuss the ambitious 750 billion euro ($843 billion) coronavirus recovery fund, which was proposed by France and Germany in May, as well as the next long-term budget, covering the 2021-2027 frame.