London Daily

Focus on the big picture.
Wednesday, Oct 22, 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
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×