All the support, solidarity and concern, but no more money. With Europe half knocked out by the second wave of the virus, and confinements hardening every day from north to south and east to west, countries like Espia they want to reopen the debate on if the amount approved in the spring to mitigate the damage of the pandemic is sufficient and if more emergency measures are needed. The Eurogroup, however, sees things differently.
It was said by its president, the Irishman Paschal Donohoe A few days ago, French, German and Dutch sources have reiterated it in the last few days, and the finance ministers have indirectly confirmed it this Tuesday in Brussels: not for now. The majority thesis is that a huge effort was already made in spring, approving a triple safety net with 540,000 million euros in loans for companies (through the European Investment Bank), to finance the automatic stabilizers and ERTE (through the so-called program Sure, whose first disbursement to Spain of 6,000 million was executed last week) and for states if necessary, with a liquidity line of 240,000 million euros made available by the Partly, the European Stability Mechanism, but no one has asked yet because of the stigma associated with asking for help from the body that was created and used in the past to rescue countries.
But in addition, in July the Heads of State and Government, after enormous difficulties, approved a plan with a Recovery Fund of up to 750,000 million euros, of which 390,000 will be in transfers, not in loans, and therefore they do not compute for deficits or national debt. The problem is that this money is not yet available and it may take many months to arrive, because the development of the regulations is stopped in the negotiations between the Council and the European Parliament, for various reasons. Like the rule of law. If more money is needed for the EU Budget for the period 2021-2027. Or the conditionality to access the funds, since the Eurocamara supports that it be much lighter and that, for example, it does not include any reference to the tax situation.
Some, like Spain, want to start talking about the next steps or to review those taken, in case they were not enough or adequate. “It is very timely that, from this Eurogroup and in the next two months, we evaluate and review how these instruments work and see if it is necessary to address a modification, as we do with the instruments at the national level, which we are adapting to the circumstances specific and the needs of each moment “, assured the minister Nadia Calviño before the meeting begins.
Because although it was always clear that those 750,000 million for the entire EU is not enough to counteract the effects of lockdowns, the paralysis of tourism or the blow to trade, most, if not all, expected that at this point in the year the situation would be better. The ghost of several closed months would lead to an economic catastrophe. However, the answer for now is that you have to do things right. First, approve what is pending. “Discussing the amount reopens everything,” they warn in Paris. It was quite complicated to try something different.
But there is a second derivative: it is not only that the network is pending activation, but that many countries do not understand how to ask or suggest that more things be discussed when there are still hundreds of billions of euros available in credits at advantageous conditions, below the cost of financing the market, and nobody asks for them. They understand that it is problematic, that there is fear of stigma, but the credits are part of the package and “it would not make sense to eat the chocolate and leave the cookie because it is less rich”, according to diplomatic sources.
The ministers today listened to Director of the European Center for Disease Control, Andrea Ammon, to know the sanitary analysis. Yet the President of the Committee on Economic Affairs of the European Parliament, Irene Tinagli, to see the position of the deputies. The Eurogroup statement was clear: “Europe has reacted strongly to the pandemic. Coordinated responses have cushioned the economic impact. With the second wave of COVID-19 unfolding, Europe is now better equipped to weather the consequences. economic “.
They will remain vigilant, pledging to do whatever it takes and “protect citizens in these changing times.” But that doesn’t guarantee additional moves. The strategy remains the same as a few months ago: wait, watch, analyze and act. Not the other way around.
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