Spend all that is necessary, use all the mechanisms that are necessary and ask for all the help and flexibility that is necessary. It is unusual for the message from the European Commission to national governments to be of this nature, but these are not normal times. President Ursula von der Leyen has appeared this Friday together with Vice Presidents Margrethe Vestager and Valdis Dombrovskis to announce that, temporarily, the rigidity of the Stability and Growth Pact is disappearing.

All the money that the States use to face the coronavirus will not count for the calculation of excessive deficit, and the vast majority of the resources that are mobilized to compensate citizens and companies, for the loss of jobs or the cancellation of events. , will be authorized, taking advantage of the flexibility of state aid mechanisms. "The coronavirus pandemic is not only an unprecedented challenge to our health systems, but also a major shock to our economies. We are ready to do more as the situation evolves. We will do whatever it takes to support Europeans and the European economy, "said the German. "We do not suspend the Stability Pact, we use all the flexibility it provides. There is a huge margin that has never been used," said Dombrovksis.

The message is powerful. Not so much for the money that can be mobilized from Brussels. The 7.5 billion Cohesion Funds that were put on the table last week. Or the possibility of a total of 37,000 to provide liquidity. It is the authorization for the national authorities to do whatever they consider necessary, without a priori limits, to stop expansion, contagion and to avoid economic chaos. The slaughter in the markets on Thursday has been a decisive factor not in the philosophy of the package of measures, but in the importance of the rhetoric.

In recent weeks, messages along that line had already arrived from Brussels, pointing out that the rules contemplate a good margin of discretion and that to date it has not been pushed to the limit. But today, the Commission has given the green light to do so by waving neon signs. It no longer reluctantly admits that it can, but invites governments to do so without delay.

The rules allow to catalog as 'one off', as something ad hoc, exceptional measures that are taken for exceptional circumstances. And so the money used against the virus and its effects will be cataloged. "Yes, it means that it can be excluded from structural balances. The general direction is clear, as we have the possibility as a Commission to use the maximum margin of discrimination," said the Latvian.

"The shock is temporary but we have to make it as short and contained as possible. Member States should be encouraged to take all necessary measures to support the affected sectors, such as tourism, transport or retail. They should feel comfortable taking all the measures they deem necessary, "said the president.

The options are many. The expenses made by the State in health personnel, medical supplies, hospital capacity, production of protective equipment. Also to compensate salaried and self-employed workers. "The Commission is ready to accommodate more fiscal support," said Vice President Dombrovksis, and even to "suspend the Council's recommendations in cases of need." That is, the guidelines that the Eurogroup has set and that puts maximum or minimum limits on governments. As for example, the structural effort of 0.65% of the GDP that is asked of Spain.

The decision on measures that affect competition is also very relevant. Vestager explained that the Commission opens its hand and that, furthermore, the reaction will be swift. The best example is that on Thursday afternoon, in a matter of hours, his team approved a request from the Danish government to mobilize 12 million euros with which to compensate for the damage caused by the cancellations of major events.

Von der Leyen thus reacts to fierce criticism, especially from Italy, received in recent days. At the beginning of the week, without further ado, he dedicated his appearances above all to the immigration issue and on the Greek border. A topic of the utmost importance, but one that especially haunts Berlin. With Italy closed to the brim, there was a clamor asking for a much more serious implication. Including, as the former Defense Minister has done today, very harsh criticism of Angela Merkel and Emmanuel Macron for acting alone and selfishly when it comes to medical supplies.

"We are fully ready to help Italy with whatever it takes, it is the most country most hit by the coronavirus. It needs help now, so whatever it is we are ready; whatever it is we will respond," he promised.

According to the criteria of The Trust Project

Know more

  • Italy
  • GDP
  • Margaret Robles
  • Eurogroup
  • Spain
  • Emmanuel Macron
  • European Comission
  • Berlin
  • Angela Merkel
  • international
  • Crisis
  • economy

EUROPACalviño, against massive stimulus packages that "may generate irresponsible behavior"

MacroeconomicsThe EU mobilizes 7,500 million for a Fund that helps SMEs to alleviate the effects of the coronavirus

CRISIS Bank of America already subtracts two tenths of the growth of Spain in 2020 due to the coronavirus