'Frugal Four' face down Macron-Merkel recovery plan

By Lewis McLellan
21 May 2020

France and Germany presented a joint plan for a €500bn grant-based EU recovery fund earlier this week. Eurozone periphery investors reacted with delight, but other member states resisted. Despite the opposition, most believe that Germany’s support of the plan marks a sea change in European politics and offers a chance for Europe to catch up with the Covid-19 spending of other developed economies, writes Lewis McLellan.

France and Germany were likely spurred into action by a ruling from the German constitutional court (BVG) that ordered the Bundesbank to cease its participation in the European Central Bank's Public Sector Purchase Programme if it could not justify that the scheme is a proportionate response to the ...

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