EU's Thierry Breton says 'solidarity' is only way out of Covid-19 crisis

Issued on 11/04/2020

By:Caroline DE CAMARET|Anastasia BECCHIO

In an interview with FRANCE 24, Thierry Breton, the European Commissioner for the Internal Market and former French finance minister, reacted to the rescue deal reached on April 9 between EU finance ministers in response to the coronavirus pandemic. He was speaking after a week which has turned into a psychodrama for the European Union, with an interminable Eurogroup meeting, worrying growth figures and a clear need for recovery.

Thierry Breton, the European Commissioner for the Internal Market, hailed the deal clinched on April 9 between EU finance ministers on a joint response to the economic crisis sparked by the Covid-19 pandemic. "It's good news for the eurozone, it means it's going to be stronger and the 27 member states of the EU will be all the stronger for it as well," he told FRANCE 24's Talking Europe show.

Despite unsuccessful negotiations earlier this week, finance ministers from the 27 EU member states have now agreed to implement a vast stimulus plan to help the hardest-hit European countries cope with the economic crisis created by the Covid-19 pandemic. Some €500 billion is on the table. "This is probably the longest Eurogroup meeting we've ever had... but this is probably the worst crisis since 1929," Breton said.

The former French finance minister denied that the EU was too slow to respond to the coronavirus outbreak, adding that the health sector remains, for now, the "sole jurisdiction of each member state". Explaining that the European Commission has been tasked with coordinating stock levels, especially of face masks, Breton said: "The second that we were given that task of supervision, of oversight, I called and the Commission called on all industrial players, all manufacturers to start thinking about how they can turn their production lines to producing masks."

Finally, asked about French President Emmanuel Macron's handling of the coronavirus pandemic, the European Commissioner insisted that "no one" was prepared for the current crisis, concluding:
"There's only one word to get out of this mess: it's solidarity, solidarity, solidarity."

EU finance ministers reach agreement on coronavirus rescue deal

Issued on: 09/04/2020

French Finance Minister Bruno Le Maire speaks with his advisors

 prior to an Eurogroup meeting on April 9, 2020. © Ludovic Marin, AFP

Text by:NEWS WIRES

EU finance ministers agreed a 500-billion-euro ($550-billion) rescue Thursday for European countries hit hard by the coronavirus epidemic, but sidelined a demand by Italy and France for pooled borrowing.


The breakthrough came after the Netherlands softened its position on the crucial question of making countries in need commit to economic reform and outside oversight in return for assistance.

The Hague blocked the talks two days earlier by insisting that Italy, or any other country in need, deliver on governance targets — which Rome saw as a shocking demand during a health crisis.

"Europe has decided and is ready to meet the gravity of the crisis," French Finance Minister Bruno Le Maire tweeted after the talks.

As a compromise, the final statement clearly states that the rescue would be specifically earmarked for costs related to the COVID-19 crisis, which has killed more than 65,000 people in Europe.

The ministers, however, set to one side a proposal from Italy, Spain, and France for a joint borrowing instrument, sometimes dubbed a "coronabond", that would have raised money towards a recovery after the outbreak.

Germany, the EU's most powerful member, has refused the pooled debt proposal and ministers agreed only to "explore" the idea under the direction of EU leaders, who are set to meet later in the month.

The package agreed is worth about 500 billion euros ($546 billion), short of what many observers believe is necessary to restart the European economy when the health crisis recedes.

Data indicate that the economy across the continent is already in a historic meltdown, with everyday life paralysed to fight the spread of the virus.

Despite 19 EU countries sharing a common currency, member states have reacted unilaterally to save their economies, giving richer countries such as Germany a big advantage over those with less spending power.

'Other ways'

The main component of the rescue plan involves the European Stability Mechanism, the EU's bailout fund which would make 240 billion euros available to guarantee spending by indebted countries under pressure.

Italy and Spain had the backing of the majority of member states to keep the conditions for tapping the ESM to an absolute minimum, but the Netherlands fought hard for something tougher.

Putting conditions on support is seen as a humiliation in Rome and Madrid, evoking bad memories of the eurozone debt crisis when auditors from Brussels dictated policy to bailed out Greece, Portugal and Ireland.

But the mutualisation of debts was a bridge too far for Berlin and The Hague, which refuse to take on joint loans with highly indebted states such as Italy, France or Spain which they consider too lax in their public spending.

Repeating her well-known position, German Chancellor Angela Merkel on Thursday firmly rejected the notion of pooled debt in Europe.

"But there are so many other ways to show solidarity and I think we can find good solutions here," she added.

In addition to the eurozone rescue fund, the EU ministers agreed 200 billion euros in guarantees from the European Investment Bank (EIB) and a European Commission project for national short-time working schemes.

(AFP)