Eurogroup’s economic plan for the Covid-19 crisis

The Eurogroup set up the current guidelines on fighting the economic plight of COVID-19
a. The release of €540 billion corona package
b. A €25 billion European Investment Bank guarantee.
c. The deployment of the SURE (Support to mitigate Unemployment Risks in an Emergency) programme. This will provide €100 billion in total among member states
d. Precautionary financial assistance by ESM (European Stability Mechanism) in the form of Enhanced Conditions Credit Lines. The key word is: conditionality (You will be given money if you do ‘this’). Due to this being a special occasion, macroeconomic conditions are not necessary to be met. The availability of funds for each state would be as much as 2% of a member-state’s GDP. However the number “could be adjusted”.
e. Potentially a Recovery Fund
f. Unclear points on what could constitute “resources” for the management of the public health crisis
f. No Eurobonds or Coronabonds

List of Sources:
1. https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_606
2. https://www.esm.europa.eu/glossary/P
3. https://www.euractiv.com/section/economy-jobs/news/eurogroup-agrees-on-e540-billion-corona-package/
4.https://www.ecb.europa.eu/press/inter/date/2020/html/ecb.in200412~b773e66772.en.html
5. https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-financial-assistance/loan-programmes/sure_en

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venetiangenovanmerchant

A passionate International Relations Student and Illustrator

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