LONDON - The approval by the European Union of a €750 billion (S$1.2 trillion) recovery plan designed to help member-states in overcoming the economic impact of the coronavirus pandemic is hailed as a historic step. For the first time ever, the EU will collectively borrow part of this cash and allocate it to its needier members, often in the form of grants rather than loans.

But the rejoicing inside the EU at this measure is likely to be short. For divisions are emerging over the political conditions which the European Commission - the EU's executive body - may impose in return for cash disbursements.