Spain, Italy and France are leading the offensive in favor of the “eurobonds”Italy calls on Brussels to use all his fire power financial “for not giving space to the worst instincts nationalists to”What are the “coronabonos” and why they can save the Spanish economy
The european summit yesterday confirmed that it doesn’t matter if these meetings are held in person or as in this case electronically. When there is no consensus, the discussion is stuck in the dividing line of always. It was planned to last for just a couple of hours, and dragged on as usual until late afternoon, after a dramatic discussion in which, according to diplomatic sources, the Italian prime minister Giuseppe Conte, along with Pedro Sanchez blocked the draft conclusions had agreed with the ambassadors because there appeared mentions or “coronabonos”, something that is expected, even with the use of the European Stability Mechanism. The presidents have decided to return to the finance ministers of the euro area, and in two weeks they shall submit a common proposal to stimulate the economy when it is possible to output joint of the crisis.
In what was agreed is on the need to protect large enterprises with strategic european of the predatory financial that could take advantage of its extreme weakness. The Twenty-seven agreed to take “ all the necessary measures to protect strategic assets and technology compared to foreign investments that could threaten legitimate objectives of public policy”.
Among the sectors that should be protected include the health, biotechnology, medical research, and “infrastructures that are essential to our security and public order”.
with regard to the fight against the epidemic, the statement insisted in its appeal to the Commission “to continue and accelerate your efforts to help ensure the provision of urgent and adequate medical equipment in the whole of the EU, which is the priority more acute”. To do this, “the member States must provide data that is timely and reliable.”
The community Executive asked to accelerate the approval procedures of medical supplies essential to fight against this epidemic, and in the thorny case of the obstacles that they have put some countries for other european governments to buy in your market, the consensus calls for “the adoption of the decision on the authorization for the export of personal protective equipment should lead to rising total and effective of all forms of bans or restrictions internal”. Also remember that “in the light of the recommendations of the WHO, is urgent need to increase the capacities of test , and the Member States shall inform the Commission about the situation.”
The center of the discussion was in paragraph 14 of the document of conclusions, which, by all accounts, has not pleased the nine countries yesterday signed a letter asking that they put in place mechanisms for debt collective. Finally, both the president of the Council, Charles MIchel, as the Commission, Ursula von der Leyen, said that at least they had reached a consensus to admit that “there is enough open space to discuss all the possibilities” , which is the same as saying that you still can’t rule out fully the bet by a formula of the debt collective. The president of the Commission seems to have a natural preference for leaning in more in bonds, to get him to grant a european budget more comprehensive and thus be able to intervene, but by endorsing the debt is inevitable to countries. Michel, who represents all of the countries was more moderate, saying that, it is true that all the formulas have to be explored, but insists on returning the debate to the Eurogroup. But the case is that the “progress” of the Eurogroup referred to in the document were precisely on the transfer to this board the decision about these measures and have not gone much further in defining what to do to resolve this crisis, whose consequences are going to be much more important than they had been able to intuit.
The signatories of the letter sent on Wednesday to Michel to ask for that kind of “coronabonos” were Italy, France, Spain, Portugal, Greece, Ireland, Luxembourg, Slovenia and Belgium, although the latter country, it seems, stated yesterday a position more nuanced. Against to put in place those mechanisms of debt shared have remained the Netherlands, Finland and Germany, the so-called “virtuosos”, a group which is joined Austria and, for other reasons, the eastern countries, all opposed to sharing the risks of the operation to rescue the european economy, of all those companies that yesterday already recognized Von der Leyen that they will have to “hibernate” until they pass the effects of this health catastrophe.
By now, the member countries are still hesitating about whether they are carrying out the correct strategy to try to contain the infection, it would be rather difficult to expect that they would agree to a future that you still can’t even guess.
By now, the president Von der Leyen can say that, for its part, has taken certain steps clear, as is the lifting of the emergency clause of the stability pact, the easing of the law on State aid and the plan to divert a significant amount of money from the budget of the structural funds to direct investments against the epidemic. Yesterday, the Parliament approved this transfer in a session unprecedented in that they were only present one representative per political group.
The European Union is going through a crucial test for its future.
If this is not a war in many respects it seems a lot, and if the EU is unable to demonstrate to the citizens that is useful at a time like this, it is not difficult to imagine that it will be very hard to keep up with the support of the citizens.