The Eurogroup of finance ministers has broken up an overnight virtual session after failing to agree to critical bailout measures meant to help members states grappling with the coronavirus pandemic.
Mario Centeno, the head of the group, wrote in a tweet on Wednesday morning that ministers had come close to a conclusion, reaffirming his commitment to finalising a deal.
"After 16 hours of discussions we came close to a deal but we are not there yet," Mr Centeno said. "I suspended the Eurogroup and [will] continue tomorrow, Thursday. My goal remains: a strong EU safety net against the fallout of Covid-19 … and commitment to a sizeable recovery plan."
The eurozone's finance ministers met on Monday to discuss a comprehensive stimulus package for the member states battling the Covid-19 pandemic. Europe's economies have been paralysed by the public health emergency with most countries now under lockdown to slow the spread of the disease.
Agreement on a comprehensive stimulus package to mitigate the economic fallout from the pandemic has exposed old divisions within the Eurogroup between north and south.
Nations like France, Spain and Italy had called for the creation of coronabonds to cushion the financial blow.
But more fiscally conservative nations like Germany and the Netherlands feared the initiative would ultimately lead to a pooling of sovereign debt in the eurozone with their taxpayers ultimately footing the bill.
-
Residential and commercial buildings near Yangtze River is pictured in the city of Wuhan, in China's central Hubei province. AFP -
Residents protest after ransacking a half-built makeshift hospital, as they say its location is too close to a local community, in Yopougon, Abidjan, Ivory Coast. Reuters -
Birds reappear in the bay amid the lack of cars along the coastal highway due to a quarantine imposed by the government to help contain the spread of the new coronavirus in Asuncion, Paraguay. AP Photo -
A hospital bed in one of the temporary rooms at the TCF Center in Detroit. AP Photo -
A city employee, wearing protective gear, poses for a photograph as he disinfects an area of Paseo de la Reforma avenue as the coronavirus disease continues in Mexico City, Mexico. Reuters -
Japanese Self-Defence Forces soldiers work at a hotel that has been designated to accommodate asymptomatic people and those with light symptoms of the coronavirus disease to free up hospital beds, in Tokyo, Japan. Reuters -
People wear protective masks as they take photos of blossoms while enjoying the spring weather at a park in Beijing, China. Getty Images -
British police officers stand on duty, on the south side of Westminster Bridge, with the Houses of Parliament behind, in London as life in Britain continues during the nationwide lockdown to combat the novel coronavirus pandemic. AFP -
A healthcare worker wearing a protective suit attends to a coronavirus patient at the Intensive Unit Care (ICU) of the Vall d'Hebron Hospital in Barcelona. AFP -
Medical workers wearing disposable raincoats as their protective suits to serve patients are pictured amid the spread of coronavirus disease outbreak at a local health centre in Aceh, Indonesia. Reuters -
People who lost their jobs wait in line to file for unemployment benefits, following an outbreak of the coronavirus disease, at Arkansas Workforce Centre in Fort Smith, Arkansas, US. Reuters -
A DJ wearing protective face mask performs behind a window in Prague, Czech Republic. EPA -
A Reuters photographer holds a picture of Spanish legionnaires marching before a procession taken in April, 2019, in front of the street of the procession, on Palm Sunday, the first day of Holy Week, amid the coronavirus disease outbreak, in Ronda, southern Spain. Reuters -
People are disinfected before entering a market, as Albanian authorities take measures to stop the spread of the coronavirus disease (COVID-19), in Tirana, Albania. REUTERS -
Members of the National Guard deliver supplies part of the health contingency due to COVID-19 in the country, in Cancun, Mexico. EPA
There now appears to be consensus between France and Germany, the eurozone's most influential members, over the need to shelve coronabonds for now. But how exactly to use the European Stability Mechanism, the preferred method to provide emergency funds, remains unclear.
“Because of the current crisis we have to make an exception and the ESM can be used unconditionally to cover medical costs," Dutch Finance Minister Wopke Hoekstra tweeted on Wednesday morning. "For the long-term economic support we think it’s sensible to combine the use of the ESM with certain economic conditions."
Italy, the country worst hit by the coronavirus crisis, has been resistant to calls for conditions being attached to bailout funds. Southern nations have insisted more dramatic assistance is need as their populations turn on the EU in the face of the crisis.
"Millions of Europeans believe in the European Union. We must not abandon them. We must give them reasons to keep believing. And we must act now or never, because, right at this moment, Europe itself is at stake," Spanish Prime Minister Pedro Sanchez said before the meeting.
