Jean Monnet - one of the founding fathers of the European Union - comments on the challenges that await Europe in the coming period - saying that the continent will face a number of crises, and that the future of the region will be determined in light of the solutions adopted to deal with these crises.

In a report published by the British newspaper The Daily Telegraph, writer Tom Rees highlights the most prominent challenges that await the European Union this year after the severe crisis that the region went through in 2020 due to the Covid-19 pandemic and Britain's exit from the Union.

The writer pointed out that the Corona crisis has raised the value of the debts of some countries in the region to more than 100% of GDP, so it is expected that an economic recovery plan of 750 billion euros will be implemented.

And Jessica Hinds, an economist on Europe at Capital Economics, believes that given the high debt burdens that this epidemic will generate, it will be very difficult to reach a debt ratio of 60% of GDP.

French ministers say that returning to the rules on debt and budget deficits - which were approved before the pandemic and which stipulate that the budget deficit in member states should not exceed the ceiling of 3%, and the size of debt 60% of the GDP of each country - is unimaginable in the current period.

The European Central Bank raised the deposit interest rate at a record low of 0.5% (Al Jazeera)

Changing the way to deal with the crisis

The European Central Bank left the deposit interest rate at a record low of 0.5%, and relied in return on buying bonds and providing lenders with very cheap liquidity.

In this context, Bert Cullen, a financial expert at ING Group, says that it is likely that the European Central Bank will follow in the footsteps of the US Federal Reserve system by reviewing its previous policies on inflation rates, and this means allowing access to peak inflation rates before Take hawkish policies at a later time.

Germany prepares for the post-chancellor Angela Merkel, who has managed the worst economic and health crises (Shutterstock)

The economic landscape after Merkel

The writer says that Germany is preparing for the post-chancellor Angela Merkel, which will leave her party in good shape, a 20 point advance in opinion polls, after its success in managing the worst economic and health crises.

George Buckley, an economist at Nomura, confirms that the German elections will not only define the financial situation in post-pandemic Europe, but will also represent a fundamental change in European politics as a whole.

Friedrich Meretz - one of the leading candidates for the presidency of the Christian Democratic Union - has been described as "the German Donald Trump" and is likely to return the party to its more conservative roots.

According to the writer, the formation of the next government in Germany will be a decisive factor in determining the extent of Berlin's commitment to spending on European recovery programs in the coming period.

Spain, which relies on tourism and consumption, was the worst affected among the European Union economies in 2020 (Shutterstock)

The crisis in Spain

In light of political volatility and high levels of debt, some fear that Spain will join Italy, to occupy the lowest ranks in the economic performance of the euro area.

Spain - which depends on tourism and consumption - was the most affected among the European Union economies in 2020, and its economy is expected to start to recover this year with the start of the vaccine distribution.

The unemployment crisis has deepened in Spain, rising to 16%, and the Coronavirus crisis has fueled disputes between the central and regional governments.

Greece's sovereign debt is expected to reach 200% of GDP, to occupy the second place in the world after Japan (Shutterstock)

Greece and the hopes of recovery

2020 was supposed to be the year in which the economic recovery in Greece begins with the advent of the new government in favor of economic openness, but Prime Minister Kyriakos Mitsotakis' plan to increase GDP growth by attracting foreign investment and cutting taxes has been hampered by the Corona virus.

The author stresses that the Greek economy has not yet reached the stage of recovery after the recession it has experienced during the past years as a result of the sovereign debt crisis, and the Corona pandemic has made matters worse.

Greece's sovereign debt is expected to reach 200% of GDP, with Athens ranked second in the world after Japan.

It is expected that the Greek government, in light of the decline in bond yields, will have to borrow at record levels.

On the other hand, the arrival of the vaccine in Europe and the recovery of the tourism and travel sector during the coming summer may be one of the factors that could lift Greece out of the bottleneck and save it - along with other European countries - from another difficult summer.