‘EU is a sect’ Fury as Emmanuel Macron’s allies defend Brussels’ botched Covid recovery

Varoufakis issues warning on ‘puny’ EU recovery fund

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MEPs from Macron’s La République En Marche! (LREM) party Stephane Sejourne, Pascal Canfin and Bernard Guetta defended the EU’s vaccination strategy and its recovery funds plan despite the bloc’s chaotic efforts on both issues so far.

The Macronists and europhiles claimed Brussels had finally learned from the mistakes made in the 2008 crisis and was finally advancing.

Their colleague Valerie Hayer echoed their enthusiasm and tweeted: “Stimulus plan at 27, new own resources, end of taboos on sovereignty and industry, the EU is moving forward!

“Stephane Sejourne, Pascal Canfin and Bernard Guetta recall that despite the difficulties, the EU is breaking out of yesterday’s shackles to protect its citizens!”

But the French MEPs’ praises for the botched EU plans to win the fight against coronavirus, prompted an immediate response by Generation Frexit leader Charles-Henri Gallois.

He said: “Sect.

“Their leitmotif: that France get ripped off and perish as long as the EU’s so-called advance is protected.”

The Emmanuel Macron’s allies’ optimism comes despite warnings from the French finance minister Bruno Le Maire hat the European Union risked falling behind the United States and China if it loses more time rolling out its 750 billion euro recovery plan.

Mr Le Maire issued the warning as he and his German counterpart presented plans to tap the recovery fund – agreed by EU leaders last July – for nearly 70 billion euros ($85 billion) to jump-start their post-pandemic economic rebounds.

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He said: “Let’s be clear: we were very efficient last year in the adoption of the European Recovery Plan and on the decision on common debt issuance.

“Since then, we have lost too much time. China has resumed its growth. The U.S. is booming. The EU must remain in the race.”

Europe is already suffering from a slow start to its vaccination programme, which has lagged behind the United States.

EU governments are supposed to detail by the end of the week how they plan to spend grants and loans from the recovery fund, which will be financed by joint borrowing by the bloc.

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The need for long-term planning and reforms, while also meeting requirements that 37 percent of the EU money goes to fighting climate change and 20 percent to digitalising the economy, means some countries will not get their payout requests in before mid-May.

The relatively small size of the EU stimulus and the length of time it is taking to launch have invited unflattering comparisons with the Biden administration’s multi-trillion-dollar package.

Mr Le Maire said such comparisons were “unfair and inadequate” because Europeans had benefited from stronger welfare policies during the crisis.

Before considering whether to increase the European response, Europe needed to focus on implementing the recovery plan as it stands, he said.

Mr Scholz added: “I am really confident that we are working with a very strong programme that makes the difference and is very good on the global scale”.

France did not wait for the European plan to get off the ground and last September launched its own 100 billion euro stimulus plan, of which it has already spent 30 billion euros.

While Paris has charged ahead, it has grown frustrated that other countries have dragged their feet ratifying the EU recovery plan, risking a slow start to a disbursement of funds.

Mr Le Maire urged other member states to submit their plans and ratify “as soon as possible” national legislation needed to finance the EU fund.

If the European Commission analysed national investment plans quickly, member states could jointly sign off on them by July, paving the way for payouts “before the end of the summer”, Mr Le Maire said, adding he expected a first instalment of 5 billion euros in September “at the latest”.

France is counting on receiving a total of 41 billion euros from the fund to finance its national stimulus programme while Germany expects to get grants worth 25.6 billion euros.

How much money countries get is not only based on the size of their economies, but how hard they were hit by the crisis.

Germany will spend 90 percent of its share on climate protection and digitalisation while France has earmarked 75 percent for such projects, well in excess of EU requirements.

The EU fund could boost the bloc’s growth by between 1.5 percent and 4.1 percent over five years and support the credit ratings of some of its most indebted states, ratings agency S&P Global said.

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