Triple package for the financing of labor, media and states with 540 billion. Euro agreed Eurogroup

eurogroup GR IBNA Coronavirus, EUROGROUP, Europe, Nea Famagusta

The Eurogroup has agreed on a coherent package to respond to the financial part of the COVID19 pandemicXNUMX and prepare for the recovery following the inevitable recession in which the EU will enter, with the central goal of securing jobs.

"This answer contains bold and ambitious proposals that would have been unthinkable just a few weeks ago. We can all remember the response to the economic crisis of the last decade, when Europe did very little, very late. This time, it is different ", clarified Mario Senteno, President of the Eurogroup.

"We have already seen a rapid, massive, coordinated push from the monetary, fiscal and regulatory authorities. Almost 3% of GDP fiscal measures, increased flexibility, additional liquidity systems of 16% of GDP. Every time we meet, the numbers go up. "If we combine these numbers, we should start talking about trillions of euros."

"We have answered our citizens' request for a Europe that protects" - in 16,5 hours and many more hours of preparation, said the President of the Eurogroup.

"We have provided a European solution in record time," he said, noting the agreement on three safety nets for workers, businesses and states.

"We have created 13 million jobs since the last crisis - it took many years of hard work. Many have been destroyed in just a few weeks. We need an additional level of EU protection to ensure that many more are not lost in the future. We currently rely solely on the safety nets that exist in each Member State. These come in many forms - part-time job support programs, unemployment benefits and many more. But these safety nets are facing unprecedented pressure in some parts of our Union. That is why we welcomed the creation of a temporary European instrument to support national security networks in this crisis - what the Commission has called `SURE`. This will pool our collective financial strength at national and European level, in order to channel up to € 100 billion into the national systems facing the greatest pressures. This will be promoted and perfected in the legislative process ".

He then announced the agreement for the financing through the EIB with 200 billion Euros for the small and medium enterprises and the 240 billion Euros from the ESM for the MS themselves.

The Ministers also agreed to create a support package for health expenditures up to 2% of the GDP of K-M close to 240 billion Euros. "This is an important safeguard for all euro area countries, it will be available to all ESM members, in standard terms, based on the ex ante evaluation of the European institutions," Senteno said. "Every euro area country requesting this support is still subject to EU economic and fiscal coordination and surveillance," he said. "The only requirement for access to the credit line is for the country to use these funds to support domestic financing of direct and indirect health care, treatment and prevention costs around the country. COVID 19", He clarified.

Finally, when the health crisis is over, the 27 will consider setting up a fund to fund the recovery, under the guidance of leaders, in conjunction with the next Multiannual Financial Framework.

As M. Senteno stated: “The next EU budget will be a key element of this strategy. "But today we also agreed to work for a Recovery Fund, which will finance the European investment that will be needed to build a better, greener, more sustainable and more digital economy."

"As with the three safety nets, this fund would gather our financial strength to accelerate the investments we need. This fund will be temporary, targeted and commensurate with the extraordinary costs of the current crisis and will help to spread the costs over time through appropriate funding. "Under the guidance of the leaders, discussions on legal, practical and economic aspects will prepare the ground for a decision."

"Some Member States have expressed the view that this should be achieved through the issuance of common debt, other Member States have stated that alternative ways must be found," he said.

"Let me finish. "Today we agreed on three safety nets and a recovery plan to ensure that we grow together and that we do not grow separately when the virus is behind us."

Source: KYPE