A European response to the health and socio-economic impact of Covid19
In a joint statement issued today (Wednesday 25 March), the Spinelli Group and the Union of European Federalists (UEF) urge the European Council to take exceptional action in response to the coronavirus pandemic. The Spinelli Group and the European Federalists call on EU Institutions and national governments to take the leap towards the creation of EU Recovery Bonds backed by the EU budget and Europe-wide taxes to finance a strong answer able to address the pandemic and its financial impact on the EU’s economy proactively. It urges for the creation of a European Health Union, that would give the necessary powers to the EU to ensure coordination of emergency measures to address health crises in the future.
ANDREW DUFF, President of the Spinelli Group, said: “Yesterday’s lacklustre Eurogroup passed the buck to the heads of government. The European Council tomorrow must shoulder its constitutional responsibility to secure the cohesion of the EU as a whole, and in particular take decisive action to consolidate the euro. Dealing with the pandemic triggers an enormous increase in public expenditure which will exacerbate the structural imbalance between richer and poorer member states. The EU has for years evaded the issuance of a mutualised safe asset in the form of eurobonds. So the eurozone has survived courtesy of the monetary policy of the European Central Bank but without the support of a common fiscal policy. The coronavirus crisis is time to rectify this flaw in economic and monetary union. The plague risks the lives of all EU citizens equally, and the social and economic impact will be much worse than the asymmetric shock of the financial crash in 2008. The European Council must give practical expression to the theoretical injunction for solidarity between its states and citizens. This is the time for European leaders to push forward the politics of the Union in the federal direction.” Duff added: “Bleating about ‘moral hazard’ was yesterday’s response to the last crisis. Today Europe expects a decisive demonstration of generosity and mutual concern from its leaders, without which the values and principles of our Union are fraudulent.”
"We can't yet measure the impact of COVID-19 on the European economy, but it will certainly be very important," says SANDRO GOZI, Member of the European Parliament and President of the UEF. "We need to prepare now for the worst-case scenario and put in place without delay a strong and bold response to revive the economies of EU countries. Nothing will be the same after containment. We will be entering a new world, we will have to build new Europe. The suspension of the tax rules and the intervention of the ECB will not be enough. The Eurogroup's decision to provide limited and conditioned credits through the European Stability Mechanism (ESM) to the most affected states will only cover immediate needs to keep our hospitals afloat. If we don't start issuing European Recovery Bonds immediately, guaranteed by the EU budget, Europe will face an unprecedented financial, social and political crisis. I therefore congratulate President Emmanuel Macron and other national leaders for the proposals made this morning to the Presidents of the Commission and the European Council," concludes Mr Gozi.
PRESS CONTACT:
Valentina Presa
valentina.presa@federalists.eu