More ambition needed for EU recovery instruments, says majority of MEPs

stay at home

(Credit: Unsplash)

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


Days after Eurogroup proposals for mitigating the economic crisis due to COVID-19 and ahead of the European Council, MEPs met with Eurogroup President Mario Centeno.

During the hearing in the Economic and Monetary Affairs Committee, numerous MEPs called for stronger measures to be put forward, arguing that the ones currently on the table consisted mostly of loans which would leave those countries most hit by the Coronavirus heavily indebted and increase economic divergence in the Eurozone.

Mr Centeno agreed that more ambition should be sought after but also cautioned that pragmatism would also need to be the order of the day. Notably, he recommended against exploring instruments which would require any review of the Treaties.

Tabled proposals – a good first step or a non-starter?

MEPs were quick to present diverging views with Markus Ferber (EPP, DE) asking why was it that some countries said that they would not avail themselves of the assistance instruments currently being proposed and yet called for additional instruments to be devised. Jonás Fernández (S&D, ES) however pointed out that the proposals currently on the table only provided for liquidity through loans and already indebted countries could not afford to borrow more. Various MEPs who took the floor shared Mr Fernandez’s sentiment.

Ideas for bolder instruments

Some MEPs put forward their group’s ideas for bolder ways to mitigate the crisis. Stéphanie Yon-Courtin (Renew Europe, FR) put forward the idea of establishing Recovery Bonds and asked how they could be designed in such a way as to bring the more reticent member states on board. José Gusmão (GUE/NGL, PT) said that the ECB should be given more room for action by changing the rules which restrict its action. Antonio Rinaldi (ID, IT) argued that it was impossible for such a big crisis to be overcome with such a limited ECB, adding that all other central banks have many more options open to them.

The danger of widening imbalances

Some MEPs outlined the danger of the economic imbalances, which will be created as a result of the pandemic, and that the risk that recovery efforts, if not well coordinated at EU level, will actually increase these imbalances. Sven Giegold (Greens, DE) pointed out that those member states with more fiscal space would be able to support their businesses much more than those countries with less, and this all the more so if the EU support instruments were only a loan type. Roberts Zīle (ECR, LV) warned that if the EU recovery funds were to take time to be in place, the national support funds, mostly in place very quickly, would increase disparities in the single market.

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

How the world’s best teacher is changing lives in Africa

Member States and Commission to work together to boost artificial intelligence “made in Europe”

Nitrate pollution of water sources: new impulses for EU Water Policy?

Can indoor farming feed the world?

EU leaders agree on 2030 Climate and Energy Package: is “flexible” brave enough?

This German supermarket’s shelves are filled with food other stores won’t sell

This 3D-printed steak could help us reduce meat consumption

Biodiversity ‘fundamental’ for global food systems, at “heart’ of development – UN agriculture chief

LETTER FROM AFGHANISTAN: Elections serve up food for thought, for Afghan youth

This young scientist is tackling food insecurity for the world’s most vulnerable groups

Longer hours, more emails and shorter meetings – working from home in the time of COVID

‘Global care crisis’ set to affect 2.3 billion people warns UN labour agency

Civilians ‘continue to pay highest price’ in Ukraine conflict, with peace prospects losing ‘momentum’

3 things to know about our Sustainable Development Impact Summit

Trump’s Russophiles under investigation, Europe remains ‘en garde’

EU Parliament: The surplus countries must support growth

Eurozone at risk of home-made deflation and recession

‘Collective amnesia’ over causes of global financial crash – human rights expert

World ‘off track’ to meet most Sustainable Development Goals on hunger, food security and nutrition

Millions of Bangladeshi children at risk from climate crisis, warns UNICEF

Eurozone: The crisis hit countries are again subsidizing the German and French banks

Eurozone: Disinflation engulfs the industrial goods sector

A Sting Exclusive: “Leading by example! EU must push for UN deal to avoid dangerous climate change”, European Parliament Vice-President Ulrike Lunacek cries out from Brussels

Sweden is fighting loneliness by housing older and younger generations together

Keeping cool in the face of climate change

Mobile Technology in Nowadays Medical Practice: Is It a Safe Path?

“Working together to make a change at the COP 21 in Paris”, an article by Ambassador Yang of the Chinese Mission to EU

A jingoistic Spanish ‘war’ from the past

Security Union: political agreement on strengthened Schengen Information System

Leaders making these 5 key investments can shape an inclusive future

Over 330,000 Congolese migrants at risk after mass deportations from Angola – UN rights chief

An all-out fight for the EU budget

In Venezuela, Bachelet calls on Government to release prisoners, appeals for ‘bold steps towards compromise’

Colourism: How skin-tone bias affects racial equality at work

EU attempts to make new deal with Turkey as relations deteriorate

These countries create most of the world’s CO2 emissions

Will Europe be able to deal with the migration crisis alone if Turkey quits the pact?

Brexit: Six more months of political paralysis or a May-Corbyn compromise?

“The winner is who can accelerate the transition to a new digital era”. The Sting reports live from EBS 2015: a Digital Europe 4.0

UN global education envoy urges new funding for ‘lost generation’ of children forced out of classrooms by conflict

Where are the world’s nuclear weapons?

Will the EU ever tackle the migration crisis despite the lack of political will?

‘Dire consequences’ for a million children in the Middle East, North Africa, as funding dwindles

COP21 Breaking News_03 December: Unprecedented Global Alliance for Buildings and Construction to Combat Climate Change

Trade: First year of the EU-Japan Economic Partnership Agreement shows growth in EU exports

Climate change: new rules agreed to determine which investments are green

Currency Union might not let an independent Scotland join the EU as the “Yes” front now leads

Data protection: Commission decides to refer Greece and Spain to the Court for not transposing EU law

The Cold War had an unintended side effect: It created a European wildlife paradise

Cholera surges, children in urgent need one month after Cyclone Idai slammed southern Africa – UNICEF

EU Emissions Trading System does not hurt firms’ profitability

How AI and satellite imaging can stamp out modern slavery

“A sustainable economy, low-carbon, resource-efficient, resilient and more competitive on the global stage”, EU Commissioner Vella in a Sting Exclusive

DR Congo: Ebola response resumes despite ‘risky environment’

Are Halloween pumpkins a problem for the planet?

Suicide Prevention: Using Graduation as a Transformative Tool

WHO reports ‘very strong progress’ in battling DR Congo Ebola outbreak

We need to give voice to ‘We the Peoples’, says UN chief

Medical deserts in the European Union: the practicalities of universal health coverage

Water scarcity is a growing problem across the Middle East. Is this how we solve it?

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