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The ministers agreed that all members of the EMS meet the conditions to receive support in the context of the Support for the crisis pandemic.
By agreement on the characteristics and terms of approval of … crown loans given by the European Stability Mechanism to member states to deal with the pandemic Eurogroup.
The ministers agreed that all members of the EMS are eligible for support in the context of Pandemic Crisis Support. This will represent at least 2% of the GDP of each country and will be related to the “direct and indirect costs of medical care, treatment and prevention due to its crisis.” derision». However, what falls and what does not fall in these costs is not entirely clear. This will be decided in consultation between each country and the EMS. Applications can be submitted until December 31, 2022.
“The only requirement for loan approval will be for eurozone member states seeking support to commit to using this line of credit to support internal financing of the costs, care, treatment and prevention of direct and indirect medical care due to their crisis. ” The president of the Eurogroup Mario Senteno.
“This commitment will be analyzed in a single standard-based pandemic plan, for each facility provided in support of the pandemic crisis.”
“We also agree that monitoring and surveillance must be proportional to the nature of the symmetrical shock caused by the crisis, in line with the EU framework and relevant ESM guidelines,” said Commissioner for Economic Affairs Paolo Gentiloni.
“The ministers agreed with our proposal on the common financial terms and conditions that apply to any facility provided under Pandemic Crisis Support. This includes a maximum 10-year average for nature-friendly loans and favorable interest rates. outstanding of this crisis, “said EMS chief Klaus Regling. As he said, the interest rate with the current data will be 0.1%.
The Eurogroup welcomed the Commission’s intention to implement a simplified reporting and monitoring framework, which will be limited to the commitments outlined in the pandemic plan. “ESM will also implement the Early Warning System to guarantee the early reimbursement of Pandemic Crisis Support,” said President Senteno.
Eurozone ministers have reaffirmed their support for the Pandemic Crisis Support Unit, given the widespread impact of the COVID-19 crisis on all members of the ESM. Following a proposal from the EMS CEO, the ESM Board of Directors may decide by mutual agreement to adjust this deadline. The CEO’s proposal will be based on objective data on the course of the crisis. Eurozone member states will remain committed to strengthening economic and financial principles, in line with the EU’s economic and fiscal coordination and oversight frameworks, including any flexibility applied by the relevant EU bodies.
The institutions are expected to confirm the evaluations as soon as possible and prepare, together with the authorities, the national plan, based on the agreed model. “There are no reports of Troika,” said Mario Senteno.
“Subject to the completion of national procedures for each request, the ECB’s administrative bodies will approve individual pandemic plans, individual decisions to provide financial assistance and financial facilitation agreements,” according to Article 13 of the EC Treaty. in the Eurogroup statement.
The Eurogroup also welcomed the ongoing efforts of the Council on the SURE proposal, and of the EIB administrative bodies to create the pan-European guarantee fund, to support European workers and companies.
