After the announcements come the details of the measures: to respond to the coronavirus epidemic that is currently hitting the whole of Europe, the European Union decided on Tuesday 10 March to mobilise €25 billion. However, this money is not a new fund, European Commission spokesman Eric Mamer said on Wednesday 11 March; it is only unused funds.
At the end of the videoconference of Heads of State or Government on 10 March, the European leaders undertook to propose, as early as this Friday, guidelines for introducing greater budgetary flexibility and to set up an investment fund of €7.5 billion, which could eventually be increased to €25 billion (see EUROPE 12443/1).
Asked about the new fund, Mr Mamer explained that it was not a miracle measure “designed to solve all the economic problems faced by Member States”, but rather a complementary measure to the flexibility that would be introduced in the Stability and Growth Pact and State Aid rules.
According to the spokesman, this package of €25 billion already exists, since it is based on funds – €7.5 billion – which have already been paid to the Member States by the Commission under the Structural Funds and which have not been used by those States. Under different circumstances, States would have to have returned this money. However, due to the coronavirus crisis, it was decided to leave these funds to them and turn them into a kind of national contribution, to which a new tranche of European co-financing would be added. This would make it possible to reach the sum of €25 billion.
However, the Commission recognised that a Member State with no unused funds would not be able to benefit from this measure (in such a case, “this liquidity measure cannot apply”).
The details of this envelope will be known by the end of the week, when the Commission will present a proposal to amend the common clauses of the Structural Funds. It will become effective after validation by the EU Council and Parliament and a working party (task force) chaired by the Commission will be set up to ensure the proper implementation of these funds.
Shocking phrases from leaders create anxiety
During the unprecedented meeting held by videoconference, several European leaders reportedly expressed their deep concern about the virus, which also infected a UK Minister of Health, Nadine Dorries. The German Chancellor referred to the fact that 70% of the German population was at risk of infection, reiterating this information at a press conference.
Other leaders also denounced unilateral border measures applied by some Member States, such as Slovenia and Austria (see other news), as well as export bans on equipment implemented by others, such as Germany and France.
These export restrictions are currently under review by the European Commission. They were also discussed during a videoconference between the manufacturers/suppliers of protective equipment and Commissioner Thierry Breton, who also agreed to continue to increase the production capacity of the equipment in question to its maximum. They also agreed to consider the use of equipment that does not meet EU standards “to widen the options available” and to assess protocols for the reuse of equipment. In addition, Commissioner Thierry Breton is expected to hold talks with the pharmaceutical industry in the coming days. (Original version in French by Sophie Petitjean)