Monday, October 18

The EU is confident of a rapid and strong economic recovery if infections continue to fall

The President of the European Commission, Ursula von der Leyen, in Brussels.

The President of the European Commission, Ursula von der Leyen, in Brussels.

The gale of widespread outrage expressed against the Prime Minister of Hungary, Viktor Orbán, over the law linking pedophilia and homosexuality and prohibiting talking about sexual identity in schools, has not dissipated and has continued to resonate with force in the corridors of the Council European. But the Heads of State and Government of the EU have focused this Friday on what is on the agenda: talk about national investment plans and reforms, the ‘NextGenerationEU’ program and an economic recovery that will be “strong”, according to the Prime Minister, Pedro Sanchez, and “fast”, according to the German Chancellor, Angela Merkel, as long as the numbers of infections by covid-19 continue to fall and the European Union manages to avoid a fourth wave of infections.

“The prospects for economic recovery are very strong and, in particular, in our country where forecasts place Spain as the country that will lead the economic recovery in the coming years in the European Union as a whole ”, Sánchez stressed after the summit“ The possibilities of a rapid economic recovery as well as a rapid return to pre-pandemic levels are relatively good. However, all this depends on us doing everything possible to avoid a fourth wave of the pandemic that would make us regress again ”, pointed out a Merkel extremely concerned about the advance of the delta variant.

The strong, rapid and coordinated economic response of the European Union and the 27 to the coronavirus pandemic, through an unprecedented injection of liquidity, a recovery plan of 750,000 million and an employment support fund of 100,000 million, has made it possible to create the right ground for a “solid, inclusive and sustainable recovery”, indicate the conclusions adopted at the Euro-summit after the European Council. A fiscal support that European leaders understand must also remain during 2021 and 2022. The same recommendation that the president of the European Central Bank has once again put on the table, Christine Lagarde, and the Eurogroup, Pascal Donohoe, present at this Friday’s meeting in Brussels.

2022 will be key

The Irishman’s diagnosis is that the European economy is in a recovery phase but also that the design of the 2022 budget policy will be “key” for the future of the European economy. “Many economies in the eurozone have begun to reopen while others will need time to recover,” he predicts. Until the end of 2022 the countries of the Eurozone they will not have to worry about the rules of the stability and growth pact, the threshold of 3% deficit and 60% public debt.

Meanwhile, European governments will have another focus of concern: applying the national recovery plans that the European Council has reviewed for the first time this Friday. As explained by the president of the European Commission, Ursula Von der Leyen, so far they have received a total of 24 plans, of which 12 have already been approved. Among them is that of Spain that the government hopes to see approved in the Ecofin on June 13. The summit has also served to reiterate the commitment of the Eurozone countries, which are asking for an “agreement without delay” with the banking union that continues to be blocked, among other reasons, by the German presidential elections at the end of September.

The European Council, as he explained, von der Leyen also has the endorsement of the Twenty-seven of the Brussels plan to grant another 3,000 million euros to finance the reception of Syrian refugees in Turkey until 2024 and another 2,200 million for Lebanon and Jordan.

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