It is too early to call on some European Union countries for another common stimulus for economies affected by the Coronavirus crisis. This was stated today by Vice President of the European Commission, Margaret Westager, who states that the Union must now focus on the successful use of the approved redemption fund. At the same time, some EU commissioners do not hide the fact that a package worth 750 billion euros (more than 19 trillion crowns) could be the first step towards a permanent common debt.
The commission wants the first funds raised through the joint loan, unprecedented among member states since the summer, to be distributed. Nevertheless, politicians in some countries, led by France, are already calling for a new stimulus package in light of the expected effects of the epidemic. The criteria for the first fund were agreed upon by the leaders of member states last summer after the first wave of the Covid epidemic, but the effects of the second winter wave were, according to supporters of more money flowing into the economy, at least dangerous. For example, French European Affairs Minister Clement Bion said over the weekend that the European Union needs more public investment in order not to lag behind the United States. US President Joe Biden wants to pump an unprecedented $ 4 trillion (84 trillion crowns) into the economy because of the pandemic.
“I find it odd to talk about a new stimulus plan that we don’t know if we need, and we still have a lot to do“Vestager” told the French newspaper Le Echo today. I came across an incomplete list of countries that took all the necessary steps to launch the fund. National recovery plans, on the basis of which the European Union’s executive branch will distribute the funds. So far, the commission has received from 17 countries, including all major economies, and the Czech Republic is not the only country among them in the four Visegrad. The Czech government approved a plan to use 172 billion crowns from the fund today. .
Although the Commission does not envisage the rapid introduction of further support measures, in the long term, according to some commissioners, the reuse of public debt is not excluded. In addition to France, this idea has always been supported mainly by southern European countries, while the Netherlands, Austria and Scandinavia in particular are opposed.
“The more we succeed in putting this fund into practice, the more room there will be for discussions about introducing a permanent instrument, perhaps of a similar nature.Valdes Dombrowskis, Vice President of the European Commission, told members of the European Parliament last week. Likewise, European Union Economic Commissioner Paolo Gentiloni said it would be critical for EU countries to agree to new taxes and fees, which Brussels wants to pay off common debt by mid-century.
Initial discussions among the leaders showed that they had different views, for example, about introducing a special corporate tax, carbon duty or introducing emissions allowances for new sectors. In addition, unlike the Czech Republic and other countries, several countries have not yet agreed to increase their guarantees to the EU budget, without which the Commission cannot borrow money for the reconstruction fund under the best of circumstances.
Source: CTK, Reuters
The European Commission has proposed easing the rules for lending by banks
The European Commission (EC) has proposed loosening some accounting rules for banks so that they can lend to companies and families economically affected by the Coronavirus more easily. This was announced today by the European Commission Vice President in Charge of Financial Services Valdes Dombrovskis, who states that the adjustments are only temporary for the duration of the crisis. The concessions relate in particular to some of the requirements adopted in response to the financial crisis at the end of the last decade, aimed at preventing unhealthy growth in bank indebtedness.
The European Commission has proposed relaxing the EU budget rules, and it will help the bloc countries
The European Commission today proposed to member states in the bloc to relax the European Union’s budget rules, which will make it easier for governments to deal with the effects of the Coronavirus crisis on their economies. This was announced in the evening by the President of the European Commission, Ursula von der Leyen, according to which Brussels is using the emergency clause of the Stability and Financial Growth Pact for the first time. The Commission called on the European Union countries to support its current proposal as soon as possible.
The European Commission has suggested using reserve funds in the event of an uncontrolled Brexit
Entrepreneurs and farmers from European Union countries will be able to benefit from aid from European reserve funds should the British leave the European bloc without an agreement. The European Commission decided to do so today as part of another package of recommendations in the event of a disorganized Brexit from the European Union. According to a commission spokesperson, Brussels, regardless of developments in the British Parliament, is not changing its stance on Brexit, awaiting proposals from London and preparing for some kind of uncontrolled separation.
Next year the European Commission will propose how to change EU treaties
Today, the President called for caution in amending European Union treaties in order to solve the debt crisis in the euro area …
The European Commission will not fine member states
The European Commission (EC) will not impose a fine on member states, such as Italy and France, that …
The European Commission has not been steadfast in bailing out countries
The way the European Commission implemented rescue programs for member states affected by the financial crisis was …
The European Commission left the growth estimate for this year unchanged, and it will slow next year
The EU economy will grow 1.4 percent this year, in line with previous estimates. However, the growth of the Eurozone economies will be about a tenth of a point weaker than previously expected and will reach 1.1 per cent. This was reported by the European Commission (EC) in its fall macroeconomic forecast today.
The European Commission will not propose to freeze Portugal and Spain’s funds
The European Commission will not propose to freeze part of the funds for Spain and Portugal next year …
The European Commission is not satisfied with the Greek reform plan
The European Commission (EC) is dissatisfied with the recent reform plan presented to it by Greece, which …
The European Union has not ruled out legal action against Germany regarding the European Central Bank
Alternatively, the European Commission could initiate legal action against Germany over its Constitutional Court’s decision to buy bonds by the European Central Bank (ECB). This was stated by Reuters in reference to today’s European Commission statement.
European Commission: The economic recovery has begun to reduce unemployment in the European Union
The economic recovery has already begun to contribute to reducing unemployment in most of the European Union member states, but it is still higher than it was before the economic crisis. This was stated by the European Commission on the basis of analyzes of the economic situation presented today by 27 of the 28 member states of the bloc. However, the financial sectors in some European Union countries are threatened by large numbers of non-performing loans.
The European Commission rejected the Italian budget plan
The European Commission (EC) rejected the Italian government’s 2019 budget plan and gave Rome three weeks to submit a new proposal. In Strasbourg, Valdes Dombrowskis, European Commission Vice President for the Euro, Social Dialogue, Financial Stability and Capital Markets, told reporters today. According to him, Monday’s interpretation of the Italian government did not change the negative view of the Commission on the budget plan with a deficit of 2.4 per cent of GDP as the country’s indebtedness rises.
The European Commission has officially proposed a tax on financial transactions
The European Commission has officially proposed the introduction of a financial transaction tax in 11 member states of the European Union. The tax, which requires banks to participate in the costs of the financial crisis, should generate up to 35 billion euros per year.
Economist: The Czech Republic does not have a budget, and postponing forecasts is irresponsible
According to the economist Mojmmer Hempel, the Czech Republic currently does not have a budget. The former deputy governor of the Czech National Bank (CNB) said yesterday on the CNN PRIMA news program that the fact that the Finance Ministry relayed its macroeconomic projections from November to January is irresponsible. According to Finance Minister Alena Schillerová (for YES), forecasts cannot be made in a time of high uncertainty. The minister also made clear that the government is not planning any general measures to prevent the spread of the Coronavirus by the end of the year and that there are no current public measures.
Economist: Italy’s debt is not sustainable, it must be restructured
Italy’s debt is unsustainable in the long term and will ultimately require restructuring. Economist Azad Zangana of the Schroders investment company told Reuters today. Italy is one of the countries hardest hit by the Coronavirus crisis and will have to increase its debt significantly this year.
According to the Spanish Central Bank, the Eurozone economy is not in danger of a recession
According to economic models, there is currently no recession in the Eurozone or Spain. In an interview with the letter El País, the Governor of the Central Bank of Spain, Pablo Hernandez de Cos, said this. But he pointed to threats to economic growth, such as the impending Brexit.
Economic activity in the Eurozone continues to decline
The decline in economic activity in the Eurozone deepened during the month of October. That showed the comprehensive PMI indicator …
Economic activity in the Eurozone has returned to growth after the Coronavirus
Economic activity in the Eurozone returned to growth this month, which is stronger than expected. This is revealed by a survey published today by IHS Markit. Activity was declining in the spring due to measures taken against the spread of the new coronavirus, which required widespread restrictions. Germany also narrowly avoided a downturn in July.
Economic activity in the euro area returned to growth in March
Economic activity in the Eurozone returned unexpectedly to growth in March. The increase in production from the fastest-growing factories in 23 years has compensated for the continued slowdown in the dominant service sector. This was demonstrated by a survey whose preliminary results were published today by IHS Markit.
Economic activity slowed in the euro area
Economic activity in the eurozone countries slowed in June and in the second half of the year …
“Proud twitter enthusiast. Introvert. Hardcore alcohol junkie. Lifelong food specialist. Internet guru.”