My interview in China Radio Int’l about the EU post-Covid economic recovery measures

This interview is part of ? The Beijing Hour ?, a prime-time news program aired in China Radio International. In a nutshell, I made the following statements.

TOPIC 1: Regarding the pressing issues to be discussed at the Eurozone finance ministers virtual meeting on May 8, 2020

This topic is very technical. But let me try to emphasize in plain English what is at stake, not only focusing on the video conference that will take place on May 8.

In my view, there are at least three essential issues.

First issue: How much financial support is needed over the short term and the longer term? How much shall EU countries allow the debt to grow? Of course, this debt will have to be repaid by the next generation(s).

In this regard, EU countries have very different philosophies and also very different needs.

Some EU countries are very strongly hit by the pandemics, for instance countries that rely heavily on tourism. In addition, some countries experienced a challenging situation before the crisis. By contrast, other countries are not hit as strongly and were in a better shape before the pandemic.

The second issue is “How to allocate the support?”

The third issue -- and certainly the biggest one -- is: to which extent should European solidarity prevail?

Shall the EU members mutualize the Corona debt? Should the rich members of the EU end up subsidizing the weaker ones?

TOPIC 2: Regarding how the EU provide better financial support to help member states re-open amid the pandemic

In my opinion, the top priority, even before talking about financial support, is to restart the economy as soon as possible and as much as possible and, at the same time, to avoid a second, a third or more waves.

We have to learn how to live with the virus, isolate better people at risk, at least until a vaccine can be found and maybe herd immunity can be built.

 Of course, there are many unknown elements regarding this vaccine and this herd immunity.

 Now, let’s talk about the financial support:

 It has to be quick and without much red tape.

Even more important, it has to be as fair as possible, knowing well that perfection is impossible to achieve.

I observe some industries / some companies / some people who receive enormous support because they are very vocal, well-organized, and well connected.

At the same time, I also observe other industries / companies / people receiving much less financial support or nothing. And sometimes they would really need support. Or sometimes they do not need support because they are been so careful for so many years in building up sizeable reserves.

In my view, a lack of fairness in a society is like poison and it should be minimized.

TOPIC 3: Regarding the impact of the German court ruling on the European Central Bank's bond-buying program

To recapitulate: the German top court has ruled that the European Central Bank's mass bond-buying -- to stabilize the eurozone -- partly violates the German constitution.

This German of Germany also said that there is not enough German political oversight in the purchases and that the German Bundesbank carries the most weight in the European Central Bank's decisions.

Legally, we can discuss at length whether the European law or the German law should take precedence.

Of course, we can also claim that the Constitutional Court of Germany is not as important as the will of the German people and the will of German politicians.

But still the main point is that this court decision will make it somewhat harder for the members of the European Union to find a far-reaching consensus.

Link: https://chinaplus.cri.cn/podcast/detail/1/217521 (as from 10:15 min)

@PhilippeMonnier