Budget restrictions for EU countries will apply again after the economic recession caused by the coronavirus pandemic is over, said European Commission Vice President Valdis Dombrovskis.
“We cannot say when, given the uncertainty,” Dombrovskis told Italian newspaper Corriere della Sera in an interview published Saturday. He added that the Commission will discuss the issue in the fall.
In his interview, Dombrovskis said “In our recommendations, we emphasised that crisis response support programs should be targeted and temporary. But this is a symmetrical shock that affects all countries, caused by a health crisis and as far as possible we must protect the production capacity of the European economy, jobs and incomes. We need to help sustainable companies, those that were not in difficulty before Covid. This requires large-scale interventions. The more we can protect businesses and jobs now, the sooner the economy will rebound when the pandemic is over. We must bear in mind medium-term fiscal sustainability, but we must also respond to a crisis on a large scale “.
“The Recovery and Resilience Facility is there to finance reforms and investments. According to our proposal, governments make their recovery plans and the Commission assesses whether they are in line with European priorities, for example in the environment or digitally”, he added.
It is then up to the governments themselves to indicate the benchmarks, the reference thresholds, and the fulfillment of the benchmarks to allow the payment of European funding. The Commission will have to approve the plans, but the governments themselves will be in the cockpit.”
Politico / Corriere Della Sera