Agreement on the EU’s coronavirus recovery fund is drawing closer

The FT reports on 29 June 2020 that Angela Merkel expressed her optimism on reaching an agreement on the EU’s EUR 750 billion post-coronavirus recovery fund. They have been disagreements over the size of the fund, the proportion of loans vs grants provided by the fund, when repayments should start for the loan portion and the lifetime of the facility. Most of the resistance has come from the so called “frugal four” countries, which include Denmark, the Netherlands, Sweden and Austria.