European Central Bank President Christine Lagarde addresses a news conference on the outcome of the meeting of the Governing Council in Frankfurt January 23, 2020. — Reuters pic

FRANKFURT, Nov 19 — European Central Bank chief Christine Lagarde on Thursday called for the EU’s planned coronavirus recovery fund to become available "without delay”, after Poland and Hungary blocked the adoption of the plan.

The appeal came ahead of a videoconference by EU leaders set to be dominated by the budget row, which threatens to hold up the unlocking of badly needed stimulus to cushion the economic hit from the pandemic.

The €750 billion (RM3.6 trillion) Next Generation EU package "must become operational without delay,” Lagarde told the European Parliament’s committee on economic and monetary affairs.

"The package’s additional resources can facilitate expansionary fiscal policies, most notably in those euro area countries with limited fiscal space,” she added.

The ECB itself has taken unprecedented measures to keep credit flowing and help eurozone countries weather the coronavirus fallout, including through ultra-cheap loans to banks and a €1.35 trillion emergency bond-buying scheme.

Lagarde has repeatedly urged European governments to help carry the load through fiscal stimulus, and had strongly encouraged the EU’s proposed rescue package.

But under EU procedure, member states need to give unanimous backing to the plan.

Earlier this week, Warsaw and Budapest put a roadblock in the way by refusing to sign off on the package and the EU’s long-term budget because they are opposed to plans to tie funding to criteria on rule of law. — AFP