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  • Covid-19. Eurobonds? "We do not see it under any circumstances, it would be crossing the Rubicon"

Wopke Hoekstra (Bennekom, 1975) has picked up the baton from his predecessor, Jeroen Dijsselbloem , or from the Finnish Olli Rehn as one of the most detested politicians in southern Europe. The least kind face of austerity at the hardest moment. After the unprecedented attacks by Portuguese Prime Minister Antonio Costa , the Dutch Finance Minister admitted "lack of empathy" a few days ago, and self-criticizes in an interview with EL MUNDO : "We have not done well." It defends solidarity, exceptional measures and proposes an Emergency Health Fund, a "gift" and not a loan for the most affected countries. However, the eurobonds do not move an inch: "They do not solve the current problem and there is a risk that the risks within the eurozone will increase in the long term."

There is a wave of outrage in Europe towards your country, your government and yourself. Seeing the reaction in some countries, we must be fair and admit that we have not done well. If what is left is only what we do not want, the Eurobonds, but not all the things that do, we have to be fair and make self-criticism. We do not believe that Eurobonds are the right response, but there is a message of solidarity, of being in favor of more public spending, on the urgency and how to help to meet immediate needs. If only the first half of the message is heard and the second half, unfortunately, doesn't come, it's our fault. We have not done a great job of communication. You have to admit it. Communication. Is it one of those apologies if people have been offended but in which nothing fundamentally wrong is admitted? Honestly: what I said, and what I wanted to say, in some European meetings, in my Parliament and in the Dutch press, What we want to express, the desire of the Dutch government and the pure necessity in this situation, is that we have to show solidarity, but also make sure that we put the money where our mouth is [an imprecise translation of an expression that refers to supporting actions the words]. That is why we have asked the Commission to look at how more can be done. It is absolutely necessary that in many respects we give a greater response as the European Union. You now propose a new Fund. Can you explain what it consists of? The main thing for everyone, the most urgent, is the medical situation. There is tremendous respect in all countries for medical professionals, so we must act in the absence of supplies. What we are proposing is, in the very short term, an Emergency Health Fund, which we would be willing to fund to a substantial degree to ensure that we can meet these immediate needs. We propose it at the Dutch Government level, but we also invite others to join us. We have suggested it, the answer has been positive, but it depends on them. For me it is important, and it is vital that it is clear, that it would not be a loan, something that must be repaid. It would be a donation, a gift, I don't know the exact word in English [language in which the interview was conducted]. It is real, fresh money that we make available. I do not know if they understand the anger in our countries when they talk about gifts. It is not about donations, but about using the instruments available in a political and economic Union. I understand what you are saying. There is an urgent need to act and show solidarity in the face of the serious medical problem in many countries. There is no connotation, we simply want to emphasize that it is not a loan, it should not be repaid later. That would be [morally] wrong for me. A pressing need has to be addressed on a day-to-day basis and we feel that it is an obligation for us. Medical professionals are doing a fantastic job, there is a need for equipment. We can help in that specific and we hope that many will join. You do not want Eurobonds because it would be "crossing the Rubicon of a Transfer Union". Why is that so bad? Our position is clear: the mechanisms and tools that are proposed have to give real solutions to specific problems. Like the mentioned Fund. The discussion of Eurobonds is recurrent, but for us it is not entirely clear what would be the solution in this situation. The ECB has taken very substantial steps. Eurobonds do not solve the current problem and there is a risk that risks in the Eurozone will increase in the long term. It is not a smart thing. If you are correct in the approach, Eurobonds are used and were not necessary, they can generate risks or transfers. If they are wrong, there are no Eurobonds and the Eurozone or even the EU breaks down due to political discussion or disappointment. Was the bet worth it? You have to assess what is necessary. Many finance ministers, including myself, are ready for extraordinary and substantial steps, unprecedented things to create [fiscal] space at the national, but also European, level. In the end, our task is to navigate through these difficult waters by addressing short-term needs, but also building long-term resilience for the Eurozone. The situation we are in is only the beginning. We don't want to sound negative, because we are not sure how long it will last, but it may take a few weeks or months. So it is very important to look at the resistance in the long term. The objective is to safeguard the integrity of the Union and the common currency. What order of magnitude do they manage? The proposed Fund is a few billion euros and the Mede has a firepower of 410,000 in loans. But perhaps we are talking about billions and a reconstruction on a continental scale. Perhaps they are not underestimating the impact because they have been hit less than the south? I honestly believe that at this moment of the crisis it is very difficult for individual countries to assess what the damage will be. And the same thing happens at the level of the European Union as a whole. But it will be substantial for sure. Every day we see it. Stores and businesses are closed, families are in hospitals. My wife is a doctor and she tells me terrible stories every day. All Europeans, although there are differences from country to country, are aware that we are facing something fundamental, but it is difficult to assess how large. My wish and our goal is that we reduce the impact as much as possible. The objective should undoubtedly be to lay the foundations for a recovery as quickly as possible. And so we fully agree on the solidarity measures. Solidarity is essential in all dimensions of this crisis.

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