Lagarde: EU Requires Ambitious Financial Deal Than Swift One

Christine Lagarde President of the European Central Bank (ECB) said on Sunday that it is better for European Union (EU) leaders to agree to an ambitious financial aid package rather than reach a swift deal at any cost.

This came during a European leaders' summit, headed by Lagarde, to discuss a collective plan to borrow and spend to promote a post-pandemic recovery, including investments in digital services and a green economy.

“Ideally, the leaders’ agreement should be ambitious in terms of size and composition of the package, in general terms, as suggested by the committee,” Lagarde added.

"In my view, it is best to agree on an ambitious facility along these lines, even if it takes a little longer. I hope the leaders agree on something ambitious, not fast," President of the ECB pointed out.

A financial aid package was designed to pull Europe out of its deepest recession since World War II  at Sunday's summit as leaders bickered over details for a third day in a row, increasing the risk of the package being delayed or significantly reduced.

The EU Executive Committee has proposed earlier a € 750 billion ($ 857 billion) recovery fund, in addition to $ 540 billion in previous support programs including wage subsidies for companies to prevent layoffs, however, there are disagreements over the conditions of Loans and direct grants.

Lagarde “an ambitious and coordinated” effort on a proposed recovery fund “remains critical”

Last Thursday, The ECB delayed introducing its own new measures after stimulus in recent weeks helped keep borrowing costs for companies and consumers at almost pre-virus levels.

on June 4, the 25-members of board of directors increased the pandemic emergency bond purchase program by € 600 billion to € 1.35 trillion euros ($ 1.7 trillion), a move that pumps newly created cash into the economy with the goal of maintaining liquidity and cheap credit.