Disputes Risk Delaying EU Disbursement of COVID-19 Relief Funds

Ongoing disputes in the European Union over how to implement the bloc’s new 750 billion euro ($881 billion) COVID-19 recovery fund could delay the disbursement of loans and grants to struggling EU economies -- a situation that would be particularly problematic for Southern Europe, where the recessions are deep. The disputes also highlight the extent to which Brussels struggles to quickly react to political and economic crises, which will continue to undermine the European Union’s ability to address internal and external challenges. In July, EU governments agreed to link the disbursement of money from the COVID-19 relief fund to keeping a strong rule of law, but did not establish the mechanism to do it. In late September, Germany presented a proposal to sever funding for countries where corruption or mismanagement in the use of the funds is detected. Other Western European governments, however, believe Berlin’s proposal is too soft, and...