EU leaders will face difficult and fundamental issues on Friday-Saturday (17-18 July), when they attempt to agree on the planned seven-year €1.07 trillion budget and €750bn recovery package.
Pressure has been mounting to come to an agreement to tackle the economic fallout of the pandemic, calm financial markets and invest in European economies facing the biggest recession in the bloc’s history.
The current crisis is like a meteorite that has come crashing from the sky. It is the fault of no EU government and dealing with the fallout requires cooperation.
The Netherlands and Spain are at opposite ends of the debate about the EU’s recovery package. But they must realise they are in the same boat.
The Covid-19 pandemic has triggered an unprecedented recession in Europe which has hit the EU at a delicate moment. It could be the toughest test for European integration yet. A strong, fast and coordinated, response is essential.
In March, the EU initially acted in an uncoordinated way. Since then, several EU institutions have taken fast and bold steps.
The European Central Bank has deployed an unprecedented asset-purchase programme, the European Commission has for the first time ever lifted restrictions on fiscal expansion and state aid, and the Eurogroup agreed new European Stability Mechanism credit lines, emergency measures to support those unemployed, and new funds for the European Investment Bank. Now it is time for the heads of state and government to rise to the challenge.
A speedy economic recovery will help avoid a long, drawn-out social, economic and political crisis.
Moreover, this crisis is an opportunity to put the European economy on a trajectory to meet the digital and green challenges of the 21st century. It is also a test of EU solidarity.
In a world increasingly shaped by Sino-American geopolitical and economic competition, no European state can afford to stand alone. Today’s complex geopolitical landscape makes a united Europe even more necessary./EUobserver-argumentum. al
No European State Can Afford to Stand Alone
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