London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

The EU and Covid-19: better late than never

The EU and Covid-19: better late than never

Europe is in the pandemic frontline but unity among the nations has been rare. That may be changing – not before time
Almost seven weeks after the World Health Organization confirmed the pandemic, Europe remains in the frontline of the battle to contain the Covid-19 virus. Five of the six countries reporting most cases are in Europe. Seven of the 10 countries reporting most deaths are in our continent too. Yet Europe has struggled to make common cause against the virus. In particular, it has bickered over how to support the most affected European economies against the consequences of the lockdown. In spite of innumerable acts of cross-border solidarity on the medical front, the rich nations of Europe have proved reluctant backers of the continent’s embattled poorer economies.

The good news, relatively speaking, is that this divide has not got worse and may, just possibly, have eased a little. This week, leaders of the 27 EU nations finally signed off on a €540bn rescue package. This gives countries such as Italy and Spain, which stand second and third to the United States in Covid-19 cases and deaths, the right to borrow from the eurozone’s bailout mechanism. The problem is that the EU’s southern member states are reluctant to borrow their way out of the problem, in part because they fear that to take on more debt would deepen the inequality between the EU’s south and north.

Instead, France and the southern member states want the EU to make financial transfers to its worst-affected members. Some rich states, notably Germany, balk at this. All of them, though, want to avoid a prolongation of the EU’s damaging divisions of March and early April. As a result, the EU27 decided on Thursday that they would pass the parcel to Ursula von der Leyen and the European commission, who have been tasked with creating a recovery fund alongside the EU’s next seven-year budget, which is required by the start of 2021.

No figures have yet been agreed, but the recovery fund device could prove a smart way of allowing the EU and its richer member states to stand by the poorer ones. In Thursday’s virtual summit, Angela Merkel said that Germany, already the EU budget’s largest net contributor, would make a significantly higher contribution “in the spirit of solidarity”. Ms von der Leyen said afterwards that the EU would be trying to create a funding mechanism that allowed for a balance of grants and loans.

This will be anything but easy. Familiar disputes about the size of the EU budget have not disappeared. Indeed, the UK’s departure had made them trickier. Now, in time-honoured fashion, the EU has also kicked the can down the road over the recovery fund. But it cannot do that for long. Ms von der Leyen has only weeks to come up with a package. The package is likely to be enormous. But the economic damage caused by the pandemic means this issue is urgent and could still pose existential questions, as Emmanuel Macron said this week, for the EU itself.

This is a huge moment for the EU. But it has direct implications for Britain too. If the Brexit transition was to be extended into 2021, the UK would have to extend its budget contribution too. It is hard to see the current British government contributing to the EU recovery fund as well. Yet there are no easy choices for any government in the wake of the pandemic shutdown. The EU may be divided over the economic response. But if the choice for Britain lies between cooperation with a divided EU and cooperation with a United States led by a delinquent president who advocates ingesting disinfectant, it would be a no-brainer.
Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×