Agreement in the Eurogroup for 500 billion immediately available to manage coronavirus impacts


An agreement has been reached in the Eurogroup on how the European Stability Mechanism (ESM) can access the economic impact of the corona, according to information. It is noteworthy that the representative of Mario Senteno wrote on Twitter that the teleconference of the finance ministers ended with applause, while the French finance minister Bruno Lemerre added: euros immediately available “. Mr Lemer said the member states had agreed to mobilize 1 trillion euros to support the economy in tackling the effects of the coronavirus crisis, the most important economic plan in EU history.

According to the same sources, the only condition for access to ESM’s credit lines will be that the member states of the eurozone, which seek support, will commit to using this credit line for health care, treatment and prevention of coronary heart disease.An agreement has also been reached on how the European Investment Bank will be involved and on the European Commission’s employment program.It is noted that the teleconference started hours after the initial “appointment” that was initially given at 19:00 and ended at about 23:00.

FT Correspondent: Only requirement that only coronavirus actions are funded

According to FT correspondent in Brussels, Mehreen Khan, there is a new milestone in paragraph 16 of the ESM: the line to support domestic financing of direct and indirect health care, treatment and prevention costs due to COVID 19 ”.

At the same time, according to the FT correspondent, “in the context of the compromise, Mario Senteno will send a letter to the EU leaders, stating that some capitals are in favor of the corona bonds and others are not. The mutual recognition of the debt is not mentioned in the official document “.

According to diplomatic sources, Germany, France, Italy and the Netherlands agreed tonight on a package of financial support against the coronavirus epidemic, paving the way for an agreement of all 27 EU finance ministers. The agreement provides minimal conditions. for countries to access the credit lines of the European Stability Mechanism, which will focus on financing health care related to the virus. In a sign that the Netherlands has retreated from its previous tough stance, economic terms are not linked to credit lines, sources said.

“We have reached a good agreement in the Eurogroup, a triple safety net for workers, businesses and states in the fight against Covid-19,” Calvino said in a tweet. “We will continue to work on common economic recovery mechanisms,” he added.

Staikouras: Four goals

According to APE-MPE, the decision reached by the Eurogroup through compromises should be the springboard for even more ambitious – future – European initiatives, vigilantly “keeping an eye” on the effects of the corona, but and with a view to returning the economy to normalcy.

This was pointed out by the Minister of Finance, Christos Staikouras, describing this decision as “a satisfactory agreement that offers new financial tools to deal with the unprecedented social and economic consequences of the spread of the coronavirus”.

According to Mr. Staikouras, this is a new package of measures, both for tackling the current health crisis and for the subsequent reorganization of European economies.

In particular, according to the Minister, the agreement includes the following:

The aim of the package, totaling more than € 500 billion, is to strengthen health systems, boost liquidity in the real economy, reduce unemployment and boost social cohesion.

* As for the necessary restart of the economy, it is planned to launch a recovery fund, financed by “innovative financial instruments”, as well as the use of European funds, through the reorganization of the next Multiannual Financial Framework.

This agreement, Mr. Staikouras said, comes to complement the very positive recent decisions of the finance ministers for fiscal flexibility and the European Central Bank to boost liquidity.

Senteno: With the agreement of the Eurogroup in measures of three trillion. The economic and social fabric is protected

The Eurogroup agreement on a package of measures, about half a trillion. Euros, will protect the economic and social fabric, Mario Senteno said in a press conference shortly before midnight. “Today we are responding to the demands of our people for a Europe that is helping. We did it after 16 hours of discussion, Senteno said, adding that the measures agreed were unthinkable a few weeks ago.

He emphasized that the agreement was based on three pillars: First, supporting workers by strengthening national unemployment protection systems with a € 100 billion package to be provided by the European Commission to member states. Secondly, the support of companies, especially small and medium-sized enterprises, with loans of 200 billion euros from the European Investment Bank. Thirdly, the support of Member States with credit lines from the European Stability Mechanism, which corresponds to 2% of each country’s GDP, which will reach a total of 240 billion euros. The countries that will use the credit lines will be subject to the regular supervision of their economies by the EU, while the only condition is that the relevant amounts will be available only for direct and indirect costs related to the coronation.

Mr Senteno said the Eurogroup had also discussed a plan to revive the economy when the coronavirus epidemic ended, stressing that countries should grow together rather than separately. As he said, it was agreed to create a fund, which will be temporary and will strengthen the investments that need to be made. Regarding the size of the fund, the president of the Eurogroup said that it would need guidance from EU leaders. In the next steps, he stressed, the European budget will be crucial.

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