Former head of the Dutch Central Bank /// A new catastrophe will begin as soon as this crisis is over


The European Union’s economy chief Paolo Gentiloni has warned Angela Merkel that she places the total EU at risk if she doesn’t help finance the recovery of Italy and Spain. Mr Gentiloni advised Euronews the EU job is at risk if Germany continues to dismiss calls for solidarity amid the coronavirus crisis. A stressed convention between EU leaders last Thursday finished among EU leaders in arguments according to officials, as member states struggled to agree on the best way to respond to the pandemic.

Nine countries, such as those worst hit, Spain and Italy, demanded the EU agree to”corona bonds” as a means to soften the economic blow of the coronavirus fallout.

When they rejected these measures, resulting in a rift to discriminate between EU member-states Germany and the Netherlands sparked outrage.

The bonds would pool of funding the coronavirus response among the EU 16, the debt burden.

Senior figures in Germany and the Netherlands to claim the financial strategy is an attempt by”over-spending” southern countries to benefit from rich, frugal countries.

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Mr Gentiloni affirmed the EU will slide into a deep recession due to the pandemic which has ravaged the continent over the last month.

“We can’t avoid a recession in the circumstance where we have a lockdown of our cities, our solutions and in many countries also our companies in general.

“But we can also have a solid bounce back after the downturn.”

Mr Gentiloni had previously told the Italian press that “it will be tricky to maintain the European project collectively” if Germany doesn’t undermine.

Politicians in Italy and Spain were outraged over the weekend when European Commission president Ursula von der Leyen appeared to side in an interview with media with Germany and the Netherlands.

The European Commission’s chief spokesperson Eric Mamer has since tried to backtrack on these claims, telling reporters on Monday, “All choices are on the desk”.

At the exact same time, the former head of the Dutch Central Bank has demanded the Netherlands U-turn on its refusal of corona-bonds, saying that the Netherlands will”no longer be a wealthy country in the North if the South falls”.

Nout Wellink explained: “A new catastrophe will begin as soon as this crisis is over: weak nations such as Italy, Spain, Portugal and Greece can’t cover their debts, and the next catastrophe will begin.”

This comes as the head of the bailout fund of the eurozone has warned the EU states that are hardest-hit it could take up to prepare a corona bonds establishment.

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