Coronavirus: Commission proposes to activate fiscal framework’s general escape clause to respond to pandemic

taxes

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The Commission today proposes the activation of the general escape clause of the Stability and Growth Pact (SGP) as part of its strategy to respond quickly, forcefully and in a coordinated manner to the coronavirus pandemic. Once endorsed by the Council, it will allow Member States to undertake measures to deal adequately with the crisis, while departing from the budgetary requirements that would normally apply under the European fiscal framework.

The proposal represents an important step in fulfilling the Commission’s commitment to use all economic policy tools at its disposal to support Member States’ in protecting their citizens and mitigating the pandemic’s severely negative socio-economic consequences.

President Ursula von der Leyen said:“Today we propose maximum flexibility for our rules which will allow our national governments to support everybody – their healthcare systems, staff as well as the people so severly affected by the crisis. I want to make sure that we respond to the human as well as socio-economic dimension of the Coronavirus pandemic in the best way possible.”

The coronavirus pandemic is a major shock for the European and global economies. Member States have already adopted or are adopting budgetary measures to increase the capacity of their health systems and provide relief to those citizens and sectors that are particularly impacted. These measures, together with the fall in economic activity, will contribute to substantially higher budgetary deficits.

The Commission calls on the Council to endorse its proposal as quickly as possible.

The Commission stands ready to take further action as the situation evolves.

Background

The Commission and the Council have already clarified that the coronavirus pandemic qualifies as an “unusual event outside the control of government”. The Commission believes that more far-reaching flexibility under the SGP is required to protect European citizens and businesses from the consequences of this crisis and to support the economy following the pandemic. Therefore, the Commission decided to propose the activation of the general escape clause of the Stability and Growth Pact.

The Commission’s strategy to counter the economic impact of the coronavirus pandemic includes using the full flexibility of our fiscal and state-aid frameworks, mobilising the EU budget to allow the EIB Group to provide short-term liquidity to SMEs and directing €37 billion to the fight against coronavirus under the Coronavirus Response Investment Initiative.

Today’s proposal follows the Commission’s adoption a Temporary Framework for State-aid to enable Member States to ensure that sufficient liquidity remains available to businesses of all types and to preserve the continuity of economic activity during and after the coronavirus pandemic.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Czech PM should resolve his conflict of interest as a matter of urgency say MEPs

What makes Copenhagen the world’s most bike-friendly city?

Huawei answers allegations about its selling prices

Europe and UN form bulwark against ‘might makes right’ worldview, EU foreign affairs chief tells Security Council

A shocking new report reveals what we’ve done to the natural world

New UN bullying report calls for ‘safe, inclusive’ schools for all children

Responding to the anger

We have to fight for a fairer tech industry for women

‘Act now with ambition and urgency’ to tackle the world’s ‘grave climate emergency’, UN chief urges UAE meeting

How smart tech helps cities fight terrorism and crime

EU allocates €50 million to fight Ebola and malnutrition in the Democratic Republic of Congo

2020’s ‘wind of madness’ indicates growing instability: UN chief

Populist Eurosceptics helped by Trumpists seriously threaten the EU edifice

Reasons to hope and reasons to keep perspective on a vaccine

Migration: Commission steps up emergency assistance to Spain and Greece

A voice from Syria: the positive prospect of clinical research despite the excruciating circumstances

Beyond trust: Why we need a paradigm shift in data-sharing

What paleoecology can teach us about fires in the Amazon

‘Building back better’ – here’s how we can navigate the risks we face after COVID-19

Coronavirus: the truth against the myths: Lockdown by a novel coronavirus, named 2019-nCoV

Joint EU-U.S. statement following the EU-U.S. Justice and Home Affairs Ministerial Meeting

More than 90 per cent of Africa migrants would make perilous Europe journey again, despite the risks

EU-Russia relations: the beginning of a warmer winter?

Guterres underscores UN role in achieving a free, secure Internet

Clean Mobility: Commission tables proposal on car emissions testing in real driving conditions

Brussels Vs. Google: The €1 bn EU fine and the US response

Facility for Refugees in Turkey: €127 million to boost EU’s largest ever humanitarian programme

Data show EU Economy in a stubbornly subdued state

Job vacancy data reveal better prospects for Britain, stagnation in Eurozone

From drone swarms to modified E. Coli: say hello to a new wave of cyberattacks

African elephants under continued threat of poaching, warns UN-backed report

We can build a carbon-neutral world by 2050. Here’s how

The road ahead to building a more sustainable world

The German automotive industry under the Trump spell

Western Balkans’ leaders meeting: EU reinforces support to address COVID-19 crisis and outlines proposal for post-pandemic recovery

Somalia: UN Security Council condemns terrorist attack in which dozens were killed or injured

The EU Parliament and the ECB unknowingly or unwillingly fail to protect our financial assets

Nothing about us without us: how youth empowerment creates lasting change in the climate meltdown

On sidelines of UN climate summit, US President calls for protection of religious freedom

Mark Zuckerberg will be at the European Parliament today to meet President Tajani and the political group chairpersons

Island nations on climate crisis frontline ‘not sitting idly by’

Coronavirus: Commission presents practical guidance on implementing the temporary restriction on non-essential travel to the EU

Now’s the time to take up cycling – here are 6 reasons why

The 10 most common types of plastic choking Europe’s rivers

The European Brain Drain: hard facts and harder truths

Crackdown on Christians in Eritrea spurs UN expert to press Government ‘to live up to its international commitments’

In Finland, speeding tickets are linked to your income

Switzerland to favour EU citizens in immigration quotas as the risk of a new referendum looms

Employment MEPs reach consensus with Commission on workers’ health and safety

Mediterranean and Black Seas: Commission proposes fishing opportunities for 2020

EU mobilises €9 million to tackle the food crisis in Haiti

COVID-19 is an unmissable chance to put people and the planet first

Fighting against the Public Health System dismantling means guaranteeing assistance to all

This woman changed the world of work – and you’ve probably never heard of her

The story of 2018, in 10 charts

Checks, fines, crisis reserve: MEPs vote on EU farm policy reform

How COVID-19 might help us win the fight against climate change

Venezuela’s needs ‘significant and growing’ UN humanitarian chief warns Security Council, as ‘unparalleled’ exodus continues

EU and UK soon to be in a post-Brexit rush over free trade agreement with Australia

Most leaders are missing this crucial character trait

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s