[ad_1]
The European Union wants to save the summer holidays, says EU economic commissioner Paolo Gentiloni. How this will work is still unclear.
His hometown of Rome is one of the most popular vacation destinations. But the crown pandemic has hit tourism hard across Europe. Paolo Gentiloni, EU Commissioner for Economic and Monetary Affairs, believes that the important summer season on the continent will take place despite the virus: “We will definitely have a tourist season in the summer,” says the former Italian head of government, “but with security measures and restrictions. ” The EU Commission presents recommendations for such arrangements in hotels and upon arrival on Wednesday. The Brussels authority will also propose that border controls and travel restrictions between EU countries be gradually lifted. Both should help save the tourist season.
However, no other industry will suffer as much from the pandemic as tourism, Gentiloni said in a video interview with the Süddeutsche Zeitung and a handful of foreign media. Therefore, tourism is one of those sectors of the economy that will particularly benefit from the aid package that the Commission is currently preparing. Later this month, the agency plans to present a new draft for the EU’s seven-year budget from 2021 to 2027, as well as a related reconstruction program. This program is designed to help Member States rebuild the economy after the pandemic.
If necessary, very long-term loans
However, many details are controversial between governments, such as the size of the aid fund or the question of whether it should mainly provide grants or just cheap loans are sufficient. Gentiloni demands billions of dollars, and the grants must flow alongside the loans. Because the loans would increase the debt burden “of the countries that were already most indebted and were the most affected by this pandemic.” Here the Italian probably also thinks of his country of origin. As an alternative to subsidies, the Social Democrat names very long-term loans; This also reduces pressure on indebted countries.
Last week, the 65-year-old man presented the Commission’s bleak economic outlook. In addition to the severity of the recession, he is concerned that member states are affected by the crisis in very different ways and that they also forecast to recover at different rates, he says. Germany performs comparatively well, particularly poorly Italy or Spain. These differences endanger the internal market and the cohesion of the euro zone, warns Gentiloni: “And that means that the existence of the EU is threatened.” One reason for the divergences is the different ways in which governments can support their economies.
For example, the requests for help from the crown government received by the Commission are “very unbalanced,” he says. The agency’s statistics actually show that only Germany accounts for half of all approved aid.
A remedy for differences and risks is a “robust and well-equipped reconstruction program,” says Gentiloni. “We are at a crossroads: existential threat or historical opportunity.” The historic opportunity lies in the fact that the EU could create a common financial policy instrument with the reconstruction program, should states agree to a lavish one. So far, countries have shared the common currency of the euro and are subject to the common monetary policy of the European Central Bank, but there is no common fiscal policy, the Italian complains. The new aid would reduce economic disparities between countries, and Brussels could set goals for the program, such as fighting climate change. “That would be a good step forward for the EU.”
Gentiloni says it is important that money from the reconstruction program flow “in the coming months” and not just in 2021. “The economy is gradually starting to start again,” so the danger of the rebound soon must be countered. vary in strength Bankrupt countries, with risks to European cohesion. “We must address these risks from the beginning,” he says. But first of all, the heads of state and government must agree on the new EU budget and the reconstruction package. Much money, many arguments; However, Gentiloni says: “I am optimistic”.
Crown Demos: Recklessness or Civil Rights?:Readers’ discussion
