Germany, France propose €500 billion economic recovery fund

The leaders of Germany and France proposed Monday a 500 billion-euro ($543 billion) recovery fund for European economies hit by pandemic.

In a joint statement, German Chancellor Angela Merkel and French President Emmanuel Macron said the proposed fund would see European Union budget expenditure used to help sectors and regions that are particularly affected by the outbreak.

Macron said that under the proposal, the 27 EU countries would borrow together on financial markets and use the 500 billion euro

The two leaders said they will seek a “swift agreement” on the EU budget and the proposed recovery fund, which is likely to run into resistance from fiscal hawks in the bloc such as the Netherlands. Merkel said that “because of the unusual nature of the crisis we are choosing an unusual path.”