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Coronavirus: more financial Security Required from EU States Greece’s former finance chief

That stays up for discussion, and that the EU apologized on Thursday not to be at Italy’s side from the beginning of its lethal outbreak.

Another nation that felt disappointed by Brussels previously is hoping it is going to grow to the challenge and assist with the financial fallout from the tragedy: Greece.

The EU must show it is not simply there to assist nations weather the storm now, but it will be there to prop up their economical recovery, former Greek Finance Minister George Papaconstantinou informed Euronews.

“We all know that portion of this restoration will rely on the health determinants themselves — that the testing, the vaccines, the remedies — but also the financial aid,” he said, adding there had to be”assurance” from customers and companies that they’ll recover from this catastrophe.

“What is still missing to follow the uptick of these markets is some financial support in the EU level, beyond what’s already been declared,” Papaconstantinou, that had been Greece’s finance ministry in the height of its debt crisis in 2009-2011, informed Euronews at a live meeting.

“Since what’s been declared so much has to do with handling the emergency (…) but less so with funding the retrieval. That is where we are looking for more activity on behalf of the EU. Hopefully next week we’ll have some information in the European Council in this regard,” he explained.

However, the deal doesn’t include using joint debt, or so”corona bonds” to assist the hardest-hit member countries.

No Guarantee for Greece

Now”we are anticipating an extremely poor 2020 and the expectation today is that 2021 will observe a comeback,” Papaconstantinou said.

As stated by the IMF’s latest predictions, Greece’s GDP is forecast to fall by 10 percent this year. This could make the Greek market the hardest struck throughout the Eurozone.

“Part of the dilemma is obviously that we are very reliant on tourism. And that is a wider European difficulty, because yes we are coming from lockdown, but will the internal economy operate? Will transport links function there? Will people be permitted to move around? That is a problem, since even if constraints are raised people will be hesitant to do this — and they’ll be reluctant until the wellbeing picture gets clearer,” he explained.

Italy, Spain, and France will also be especially vulnerable to the massive cost the pandemic is carrying over the worldwide tourism market.

“Really deep recession” forward

Greece enforced rigorous social networking rules in a significantly earlier stage of this outbreak compared to other southern European nations. Thus far, its speedy response has prevented the healthcare crisis that Spain, Italy or France have been confronting — also contains earned Athens flattering news policy.

Mid-March, it stated it had been prepared to inject 10 billion to encourage the Greek market.

“The dilemma is that those steps aren’t likely to have the ability to prevent a very deep recession, and the issue is how much monetary space the authorities might need to continue these steps even in 2021,” Papaconstantinou said.

“And that is where European aid will turn out to be very, very significant: to permit that in 2021 we now have a recovery, in Greece.”