French, German and Italian employers' representatives have joined forces in the face of the coronavirus crisis to put pressure on European governments. They appeal for the leaders of the continent to put in place a substantial recovery plan.
Will Europe finally agree on a recovery plan? Governments are divided, so businesses worry and build up pressure.
And it is rare: the employers of the three largest European economies (Germany, France and Italy) are launching this morning a joint call for the States to move. These presidents of the largest European employers' organizations, including Geoffroy Roux de Bézieux for Medef, see the fall of order books. They see the risk of our economies dropping out. And they note that there is currently no concerted recovery plan.
Hence this call to move the lines, especially in Germany. By this call, the German employers puts pressure on the government of Berlin since it takes part for a revival which would imply a budgetary effort of Germany for the benefit of its neighbors.
But do the lines have a chance to move?
Yes for two reasons. First, because the European Central Bank, which we always count on to support the economy, cannot do everything. It is under the supervision of the German Constitutional Court which wants to restrain it. Secondly, because Angela Merkel now accepts the idea of a European fiscal stimulus and the Netherlands, the most inflexible country, is starting to be a little more understanding.
These countries will not accept a recovery as massive as what European employers demand this morning, namely to inject 5% of GDP into the economy each year. But they cannot totally ignore the call for help from businesses, which is nothing but a call to save the European economy.