Joining forces, we will successfully master the Corona crisis: My plea for European solidarity

Together, we will successfully master the Corona crisis - politics, business and society are called upon to make their contributions. And not just nationwide, but throughout Europe. The countries of the European Union must alleviate the serious economic consequences of the pandemic in order to avoid a deep and lasting recession in Europe.

Without massive state aid, there would very quickly be an enormous rise in unemployment, a prolonged period of consumer restraint and ultimately an escalation of the crisis. State support measures in the form of direct liquidity assistance must be granted above all to small companies, start-ups and the self-employed in order to save them from bankruptcy. However, we will also have to support small and medium-sized businesses and even many a group of larger companies if the crisis lasts for a longer period of time through loans and tax deferrals.

It is our claim at Porsche to manage the crisis systematically and responsibly. What is important is an optimistic basic attitude to look ahead - and to return to full throttle as soon as possible after the crisis. We will emerge stronger from the crisis. Porsche itself has a solid liquidity that will last for several months; but of course, for us too, this liquidity is finite. Our employees receive short-time work compensation. Like many other companies, we too have applied for short-time working for parts of our workforce; at Porsche, this affects one third of the workforce. This is not about state aid. It is an insurance benefit that employers and employees themselves have paid into the Federal Agency for years.

 All in all, the use of very high public funds is unavoidable. Within the European Union, all countries must be financially enabled to stabilize the economy in order to avoid a sustained recession. The European states have very different scope for action in public budgets. That is why we must now work together as the EU to avoid being at the beginning of the next major sovereign debt crisis. It is expressly not a matter of debt rescheduling. It is solely a matter of jointly financing the economic start-up of the individual EU states. That must not be confused. The money must be spent on boosting restaurants, tourism and small businesses in the weaker states too. Not every country can do this on its own, because it would lead to an excessively high interest burden for some states. What is now needed to produce economic growth should be jointly financed - with a uniform EU interest rate. The financing costs would then be somewhat higher for the strong states, and cheaper for the weaker ones.

At the moment, Italy and Spain are the main focus of attention when it comes to financial aid to avoid serious long-term consequences of the corona crisis. These countries were hit hardest by the pandemic and have comparatively little financial room for manoeuvre. Liability for past liabilities is not at issue here. But we as the EU should tackle the restart. All states are badly affected, especially small and medium-sized enterprises and small businesses. We are an economic union and need a common approach. We are doing the same with the ESM, but it is not enough here. Now we can calculate exactly how much each country needs. With clear plans for the use of the funds, it can be avoided that the burden of the past is compensated for. It is a question of bringing the economy back to a competitive level with a one-off measure to overcome the crisis.

 In my opinion, the positive effect would be gigantic. And the decision alone would send a strong signal - to the citizens, but also to the capital markets - and a real boost to motivation. If we do not show solidarity now, Europe is lost. And Germany, as an exporting nation, would suffer particularly. We benefit from the European internal market like no other country. We can only maintain this with strong EU partners. Moreover, we must not underestimate the impact when Europe presents itself as a unity - as a strong partner in the global economy alongside Asia and the USA. Above all, I expect effects on the capital markets from the sign that we stand up for each other.

European Community loans are now urgently needed. The common European financial policy has a responsibility. This would be a clear sign that Europe stands together in the crisis. Now is not the time to insist on dogmatic basic attitudes. As an export nation, Germany in particular benefits from a sustainably strong Europe.