“We’ve provided member nations with the financial flexibility, so essentially triggered the so-called overall escape clause. Additionally, the European Stability Mechanism will include no extra conditionality,” Dombrovskis stated when asked if the bailout package would finally mean more belt-tightening for Europeans.
“Fundamentally the only condition is that money will be invested directly or indirectly to the medical measures and quantified associated with this coronavirus reaction,” he explained in an interview with Euronews’ company editor Sasha Vakulina.
It offers a safety net for health care systems overwhelmed from the COVID-19 catastrophe.
Asked if Eurozone nations would have greater access to the capital compared to other EU member countries, Dombrovskis indicated the club was not a private one.
“There’s balance of payment centers offered for states outside the Eurozone. And by the European Commission facet we had been asserting that we leave some headroom from the EU budget so there is an option to offer this kind of payment aid to non-Eurozone nations if that becomes necessary,” he explained.
“Section of yesterday’s conclusion was additionally that member nations agreed with the Commission’s proposal to utilize maximum efficacy of EU funds that are still accessible in this year’s budget without a nationwide co-financing. Thus 100% European funding and member countries have all of the flexibility to place this cash to resist the coronavirus catastrophe,” he added.
Corona bonds off the table
Dombrovskis, who’s also the EU’s commissioner in charge of financial affairs, didn’t eliminate the chance of the bloc to issue joint debt — or even so”corona bonds” — to fund its recovery following the coronavirus catastrophe.
“Exactly what the Eurogroup has consented yesterday is essentially another pair of instant crisis-response measures. But at precisely the same time, discussions began also about the recovery period,” he stated, adding that the tools required to assist the restoration continue to be debated.
“What’s been recognized by the Eurogroup is the upcoming Multi-Annual-Financial Framework (MFF) will play an essential part in this recovery period. At precisely the same time, ministers also discussed other thoughts, other choices, such as Recovery Fund, and also the way this may complement the MFF. So talks on devices like Recovery Fund will last.”