We'll be more targeted in next round of stimulus: Sen. Ben Cardin

Описание: Sen. Ben Cardin (D-Md.) joins "Squawk Box" to discuss reopening the economy, the Paycheck Protection Program and the next round of stimulus efforts.

Market players want to know how much the European Union will provide in additional coronavirus stimulus, but the institution in charge of developing it says it’s still under negotiation.

The GDP of the European Union — a group of 27 countries — contracted by a record 3.5% in the first quarter of the year, and the region is facing an unprecedent economic crisis on the back of the ongoing pandemic. The European Commission, the executive arm of the EU, was last month tasked with developing a financial mechanism that will help countries deal with the fallout.

However, speaking with CNBC Thursday, European Commission President Ursula von der Leyen said they are still working on the details of the fund.

“We are just in the starting point to set the program and to negotiate the details,” von der Leyen told CNBC’s Geoff Cutmore in an exclusive interview.

European leaders decided last week to step up their contributions into the next European budget, so the nations hit hardest by the crisis can count on some additional financial support. However, during their video call, the heads of state did not agree on how big that financial support should be nor whether it should be made up of loans or grants.

Countries in the south are supportive of grants, given that this would not increase their already-massive debt piles. On the other hand, northern nations prefer loans, even if they have favorable repayment conditions.

The European Commission is talking with the 27 capitals to overcome this impasse. The aim is to make a proposal in the first half of May.

This financial mechanism is often referred to as Recovery Fund. The Commission’s economic affairs chief has suggested it should reach as much as 1.5 trillion euros ($1.65 trillion).

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