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Gert-Jan Koopman

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Published: 21 September 2021

Gert-Jan Koopman, Director General of the Budget of the European Commission, has masterfully presented to the members of the Circle of Europeans the progress made by the European Union to address the unprecedented health and economic crisis caused by the epidemic of Covid-19 (slides below).

It is obvious that, in a record time, the European leaders have been able to unanimously put in place a mechanism that has prevented Europe from sinking into depression and massive unemployment. The European Union has shown itself to be better prepared than it was in 2008 during the financial and banking crisis caused by the subprimes.
Three advances among others must be highlighted:

1. The so-called NextGenerationEU recovery plan with more than 800 billion euros, doubling the amount of funds to be allocated to economic development projects; 57% of these funds being dedicated to the ecological and digital transition.
2. The launch of European loans, the Eurobonds, which France was calling for and which Germany, under the impetus of Angela Merkel, finally accepted; the effect being to transform the European Commission's Directorate General into the real treasurer of Europe. This gigantic step allows member States with lower ratings on the international capital markets to benefit from the European Union's triple A rating.
3. Finally, European leaders have made the allocation of funds subject to conditions, with respect of the rule of law by the beneficiary Member States.

European solidarity is therefore underway. These advances were adopted after four days of debate in the European Council. Their price is not only, as in 2008, the relaxation of the rules on state aid, but also the lifting of obligations under the Growth and Stability Pact. Furthermore, the question of increasing own resources is more topical than ever.
This must not lead to a definitive renunciation of the common rules of austerity in the long term. Furthermore, the Union and the European banks (EIB and EBRD, in particular) should consider extending conditionalities to the generous aid they grant to certain countries and their companies that are far from respecting the rule of law!

Powerpoint presentation