Corona crisis: Euro countries want to continue to pump money into the economy

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Virtual meeting: Federal Finance Minister Olaf Scholz (SPD) makes a statement before the Eurogroup meeting on Monday

Photo: Felix Zahn / photothek.net / imago images / photothek

Despite growing national debt, Germany and the other countries in the euro zone want to continue to provide the economy with a lot of money in order to limit the damage caused by the corona pandemic.

This applies to 2021 and 2022, according to a statement by the Eurogroup on Monday after a virtual meeting of finance ministers.

The Irish euro group leader Paschal Donohoe said it was determined to "fight the crisis with all available means."

Only when the recovery is underway should the debt gradually be contained again.

"We must not save against the crisis," said Federal Finance Minister Olaf Scholz (SPD).

In view of the increasing number of cases and more contagious virus variants, one must keep a close eye on the development of the pandemic and increase the vaccination rate: "Unfortunately, a real spring awakening from this Corona winter will take some time."

»Now resolutely tackle it, don't waste any time«

For Germany, Scholz promised: "We will continue to oppose this with all our strength and support employees and companies as long as the pandemic and economic situation requires it." It is now important to invest in future technologies: such as renewable energies, climate-friendly mobility and fast internet.

Scholz described the corona aid agreed in Europe in the amount of 750 billion euros as a historic opportunity.

Ambitious reform plans could bring a real boost to modernization.

The $ 1.9 trillion corona package passed in the USA and the dynamic development in China showed "that Europe must now tackle resolutely and we must not lose any time."

Reconstruction package still cannot be used

The European reconstruction aid package had already been agreed in summer 2020, but it is still not ready to go.

Germany and the other EU countries are currently working on plans for where the money should go.

They should be available by the end of April.

EU Commissioner Paolo Gentiloni said that five to eight of the 27 EU countries are already relatively far with their plans.

Above all, investment targets and test brands are still being discussed.

In addition, most states have to ratify the legal basis before the start of the Corona program so that the EU Commission can take on debts for the program.

The Bundestag also has to give its approval.

The 19 EU countries with the common currency euro pumped financial aid amounting to eight percent of the gross domestic product into their economy in 2020, according to the declaration of the euro group.

In addition, there were measures to improve liquidity - for example secured corporate loans - amounting to 19 percent of economic output.

This was largely financed through new debt.

In return, the debt and deficit rules of the European Stability and Growth Pact were suspended.

According to the will of the EU Commission, this should remain so in 2022 and the states should keep a free hand to get into debt.

The federal government does not want to commit to this for the time being.

A decision should be made in May at the earliest.

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clh / dpa-AFX