Coronavirus Update: EU financial institutions to cough another 500 billion euros for economic recovery

• Europe needs 500 billion more from financial institutions above the one trillion agreed upon package.
• It is essential to rethink European funds by having an open mind regarding the institutions and new instruments.

The coronavirus has brought the global economy to its knees and Europe has not be spared. According to Reuters, European Union financial institutions will have to release 500 billion euros in order to put the economy in recovery in addition to the already agreed upon one trillion euros package. Reuters quoted European Stability Mechanism Managing Director Klaus Regling who was in an interview with Italy’s Corriere della Sera paper. The paper wrote:

I would say that for the second phase we need at least another 500 billion euros from the European institutions, but it could be more.

Regling continued:

“For that, we need to discuss new instruments with an open mind, but also use the existing institutions, because it is easier, including in particular the Commission and the EU budget. Rethinking European funds can go a long way in keeping the European Union together,”