Dutch Prime Minister Leading the 'Frugal Four' Opposes EU Recovery Fund Plan

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Amid ongoing conflicts among European Union (EU) member states over COVID-19 economic stimulus measures, foreign media report that Dutch Prime Minister Mark Rutte is expected to lead the so-called 'Frugal Four'?comprising the Netherlands, Austria, Sweden, and Denmark?in opposing subsidy-based support, standing against German Chancellor Angela Merkel.

According to foreign media on the 18th (local time), EU leaders will hold a video conference on the 19th to discuss the EU's response to COVID-19. France, Italy, Spain, and others argue that financial support should be provided in the form of grants, while the Netherlands, Austria, Denmark, and Sweden strongly demand that it be in the form of loans.

The Netherlands, Austria, Denmark, and Sweden are referred to as the 'Frugal Four.' They emphasize that funds must be used responsibly and should be provided as repayable loans. They argue that financial support should be realistic in scale. The leaders of these four countries stated to a foreign media outlet the day before, "Pandemic funds must be used responsibly," adding, "There is no new money. Bailouts must be repaid." While acknowledging that the COVID-19 situation is unprecedented and requires substantial support, they stressed that the scale should not be so large that member states cannot absorb it amid the current crisis.

In particular, Prime Minister Rutte of the Netherlands is at the forefront of these claims. The Netherlands has maintained a close relationship with Germany due to their similar conservative fiscal policies, but their positions diverged last month when Chancellor Merkel and French President Emmanuel Macron proposed a grant-based COVID-19 recovery fund.

Rutte's stance appears to be based on domestic political circumstances, as Dutch citizens support it. A recent poll conducted by Dutch media showed that 61% of Dutch voters do not support the recovery fund proposed by the EU Commission, with only 4% in favor. Additionally, the coalition parties led by Rutte do not hold a dominant position in parliament, and pressure from EU integration skeptics continues to influence the situation.

Meanwhile, EU member state leaders will discuss the COVID-19 recovery fund plan proposed by the EU Commission last month and the EU's long-term budget through the video conference. The European Council stated that the meeting would be conducted with thorough preparation. It also added that since British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen held a video conference on Brexit on the 15th, the discussion contents will be conveyed.

This content was produced with the assistance of AI translation services.