Germany Says Delays in EU Recovery Fund May Be ‘Unavoidable’
- EU member states are split over rule-of-law conditions
- Allowing the EU to issue joint debt requires unanimity
Partition screens divide customers on an outdoor restaurant terrace in Munich, on Sept. 24.
Photographer: Andreas Gebert/BloombergThis article is for subscribers only.
Germany warned that disputes over the governance of the European Union’s virus recovery fund make it almost inevitable that it won’t be operational by the Jan. 1 target date, raising the risk of setbacks in the flow of much-needed funds to the continent’s battered economies.
“Delays with consequences for Europe’s economic recovery will most likely be unavoidable,” German ambassador to the EU, Michael Clauss, said in a WhatsApp message sent from his spokesman. Germany, which holds the rotating presidency of the EU until the end of the year, is coordinating talks related to the bloc’s 1.8 trillion-euro ($2.1 trillion) recovery fund and long-term budget.