After a debate in plenary (see other news), MEPs voted on Thursday 16 April on a series of amendments to the motion for a resolution on EU action in the fight against the Covid-19 pandemic and its consequences (see EUROPE 12466/4).
At the time of going to press, the results of the votes on a series of amendments were not yet known. The final vote on the amended resolution is due to take place on Friday (EUROPE to cover this).
According to the chairman of the Renew Europe group in the European Parliament, Dacian Cioloș (Romania), one of the aims of the text is to deliver a clear political message before the next meeting of European heads of state or government on 23 April by showing a consensus in the European Parliament.
In order to achieve this consensus and to "preserve the integrity and coherence of the resolution", the EPP, S&D and Renew Europe groups have agreed to limit the number of amendments proposed, he explained to EUROPE.
Carried by these three groups as well as by the Greens/EFA, the resolution covers a wide range of areas (health, economy, democracy, external action...)
Health. On health, the resolution stresses the need for coordination and solidarity between countries.
Specifically, it calls for an increase in the competences, budget and staff of the European Centre for Disease Prevention and Control (ECDC) and the European Medicines Agency (EMA) and instruments such as RescEU to ensure a common, coordinated and effective response at EU level.
It also suggests transforming the Scientific Committee, recently established for a temporary period (see EUROPE 12443/1), into a permanent team of independent experts working with the ECDC on virus outbreaks.
In addition, the four political groups call for the creation of a European Response Mechanism which would function both as an information centre and as an emergency response team, capable of providing assistance (medical staff and healthcare equipment) to regions hit by a sudden increase in infections.
Economy. On the economic front, the resolution calls on the Commission to propose a massive stimulus and reconstruction package for investment, going beyond what is already being done by the European Stability Mechanism (ESM), the European Investment Bank (EIB) and the European Central Bank (ECB), as part of a strengthened Multiannual Financial Framework (MFF).
It then goes on to address a number of issues that have been debated among Member States. Although it remains rather vague on the financing instruments that should be used to respond to the economic impact of Covid-19, it nevertheless reflects a more ambitious plan than what the Eurogroup proposes (see EUROPE 12465/2), explains one source.
ESM. Thus, while under the Eurogroup's agreement, the financial aid that will be provided to the States in the framework of the ESM will have to be focused on "direct and indirect" health expenditure, the conditionality advocated by the Parliament is, on the other hand, much more tenuous, if not non-existent.
Noting that "this crisis is not the responsibility of any particular Member State", the resolution stresses that the ESM must provide credit lines to countries that request them, in order to "tackle the immediate consequences of COVID-19". However, these consequences may require expenditures other than those related, directly and indirectly, to health, according to one source.
It should be noted that the EPP opposed this lack of conditionality by an amendment aligned with the Eurogroup's position.
In addition, Parliament proposes that the full financial capacity of the European Stability Mechanism (ESM) be activated, i.e. 410 billion, almost double the amount suggested by the Eurogroup (240 billion).
Recovery Bonds. Another sensitive point is the question of the introduction of new financing instruments.
On the side of the Member States, the Finance Ministers expressed their readiness, if mandated by the European Council, to work on the development of a Recovery Fund that would provide funding "through the EU budget".
They nevertheless remained very vague on the financing instruments that would be mobilised in this way, refusing to use the terms "Coronabonds" or "Eurobonds", given the lack of agreement on debt pooling.
For Parliament, on the other hand, although the resolution does not contain the term "Coronabonds" and rejects the possibility of pooling existing debts, it recommends "recovery bonds", guaranteed by the EU budget, as one of the sources of funding for the investments needed for recovery.
Wishing to go further, the Greens/EFA suggested, unsuccessfully, an amendment specifying that a substantial part of future debt should be pooled at EU level.
EIB. As regards the role of the EIB, the resolution calls on Member States "to rapidly agree on a significant injection of capital into the EIB", in order to give it the means to contribute to mitigating the economic impact of the coronavirus, in particular through the creation of a new credit line guaranteeing liquidity for SMEs.
The Eurogroup, for its part, had simply approved the EIB's initiative to create a pan-European fund providing guarantees to European companies and SMEs to the tune of €200 billion.
SURE. Welcoming the Commission's proposal to establish a temporary instrument for financial support to national part-time work schemes ('SURE' - see EUROPE 12460/1), the resolution calls for the rapid implementation of this mechanism. Regretting that the text does not mention a permanent European unemployment reinsurance scheme to be presented by the Commission by the end of the year, the S&D group tabled an amendment on this point.
Green Deal. In addition, the resolution states that economic recovery must "have at its core the European Green Deal and the digital transformation". A reference to the Green Deal, which was challenged by the ECR Group with an amendment.
Finally, the text stresses that the founding values of the EU, such as democracy, the rule of law and respect for fundamental rights, cannot be called into question in the name of the fight against the pandemic, specifically mentioning the recent measures taken in Poland and Hungary (see other news).
To consult the motion for a resolution: https://bit.ly/2KddplM (Original version in French by Damien Genicot)