The French Finance Minister, Bruno Le Maire, called on his European counterparts, on Thursday 2 April, to grasp the importance of the COVID-19 pandemic for the European structure and to use the current crisis as an opportunity to demonstrate that Europe is capable of acting in accordance with its fundamental values.
“If Europe regains its political roots” - solidarity, security, human dignity - in the face of disease, “it will become stronger, or Europe gives in to panic and national egoism and it disappears”, Mr Le Maire told the press.
Welcoming the unprecedented decisions already taken at the European level to tackle the socio-economic crisis (freezing of the Stability and Growth Pact, relaxation of the State aid framework, PEPP operation of massive repurchase of public securities by the ECB), the Minister referred to the current close cooperation with his German counterpart, Olaf Scholz, with a view of shaping the parameters of a new package of immediate measures that the Eurogroup could adopt on Tuesday 7 April.
He cited the granting of lines of credit by the European Stability Mechanism (ESM), “with light conditionalities and without any stigma on any countries”, the creation of “new financing from the European Investment Bank (EIB) for a total amount of about 200 billion euros” and the creation of an unemployment reinsurance scheme for a total amount of 100 billion euros (see EUROPE 12460/1).
But we must go further, says Mr Le Maire. Refusing that the EU gives “to the world the sad image of a continent divided between the North and the South”, he floated the idea of “a temporary and exceptional European fund” to coordinate the measures needed to revive the European economy once the health crisis has been overcome.
According to the Minister, this fund managed by the European Commission could “issue bonds with several common guarantees to all Member States”. And these common bonds would be repaid over the long term “through an exceptional resource such as a solidarity tax or a contribution from the Member States”.
Established for a limited period of “5 to 10 years” outside the 2021-2027 EU budget, the financial resources released would be used to finance dedicated programmes to strengthen health systems and boost the economy, in line with the European Green Deal and the European industrial strategy. “Strategic value chains” could thus be relocated in the EU, according to Mr Le Maire, citing the automotive industry.
“We should not be scare of protection, not the same as protectionism”, the Minister said.
Asked about the Dutch Prime Minister's proposal to set up a 10-20 billion euros fund in which Member States would help southern European countries in the form of donations, Mr Le Maire said it was “a step in the right direction” because “everyone is realising that there is a lack of solidarity”. The Dutch proposal comes after an outpouring of criticism aimed at the Dutch authorities following the tensions expressed at the emergency European summit on 26 March (see EUROPE 12457/1). (Original version in French by Mathieu Bion)