The European Union’s recovery deal to help nations hit by the Coronavirus pandemic is ambitious but “could have been better”, said Christine Lagarde, the Chief of the European Central Bank.
Adding further she suggested that the $860 billion recovery fund should have been divided in such a way to have created a greater proportion of grants over loans. “You still have more grants than loans, but it’s a good balance. It could have been better, but it’s a very ambitious project actually,” she reiterated.
After five days of negotiations, the EU leaders clinched the deal on July 21, in which they agreed to $445 billion in grants from the original proposal of $570 billion. But the ECB Chief hailed the way the money will be raised through the issuance of joint debt, calling it “clearly a demonstration of solidarity, of transfer to those that need it most”.