“European Governments need to do much more” – EP President

After lengthy negotiations at Eurogroup level failed to bring about a unified European response, European President David Sassoli called on for greater responsibility amongst national Governments, urging for the creation of a fund for economic recovery to share the costs of restarting European economies.

While highlighting the strong response taken so far by the EU, including by providing significant budgetary contributions and through the relaxation of state aid rules, Sassoli did not mince his words and admits European nations can do more. “In this moment there is a need to do much more. Our citizens, businesses, families, young people are worried about an uncertain future because in all our countries this crisis, and health emergency, will destroy millions of jobs.”

Sassoli quoted the International Labour Organisation which identified 2.5 billion worldwide as exposed at some form of risk. While it was not known how many of these could be in Europe, the Union was duty-bound to protected them. Europe took action as soon as possible, through support for national systems to limit unemployment (SURE); improved conditions for using the European Stability Mechanism (ESM), for countries that want to use it; European Investment Bank (EIB) refinancing aimed primarily at protecting small and medium-sized businesses as well as ECB support of bank liquidity and through the purchase of public and private bonds.

It is not just about solidarity

Yet, the extent of the crisis necessitated stronger action and Sassoli admitted that this is not just in the interest of solidarity, but as it will ultimately have an impact on every Member State. In this context, Sassoli proposed a fund for economic recovery to share the costs of restarting our economies. “This will take a lot of money, the EU budget is too limited and will not be enough. We need to find new, extraordinary, and shared, ways to finance it. It is not just a matter of solidarity, it is in the interests of all, given how profoundly European economies are interconnected. The collapse of one country would inevitably have dramatic consequences for all the others.”

In this context, the Eurogroup’s response must be up to the challenge, he argued.

“Governments and citizens must believe in the power of Europe, which has given us 70 years of collaboration and peace. Today more than ever we must invest in our common future.”