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February 15, 2021

"To avoid a sharp increase in insolvencies, it will be essential to carefully manage the withdrawal of public support measures'. Thus the Commissioner for the Economy, Paolo Gentiloni, at the end of the Eurogruoppo. First of all, it is a question of gradually passing" a global approach to more targeted support actions that distinguish between non-viable and viable businesses in need of support ".

Gentiloni added that it is also necessary to facilitate a diversification of financing for profitable companies by involving the European Investment Bank.

In any case, an effective credit channel must be preserved, especially for smaller companies or otherwise unable to access market financing.

For unprofitable businesses 'it will be necessary to ensure an orderly exit by requiring robust insolvency proceedings'.

The Commission is working on an initiative for harmonization or minimum convergence in targeted areas of non-bank insolvency.

Finally, the Community action plan on the management of bank bad debts must be implemented.

Increasing vaccines to ensure recovery


"A successful vaccination campaign is also crucial for economic recovery. As I explained to the Eurogroup today, our winter forecasts are based on the assumption that containment measures will ease, first gradually, towards the end of the second quarter, and then more markedly in the second half of the year. This assumes that the most vulnerable and a growing share of the adult population will have been vaccinated by then "said the EU commissioner.

"So we have to do, and will do, everything we can to make it happen. Of course, there are associated risks that are also beyond our control, linked to the evolution of the pandemic globally, the emergence of new variants and other factors. ", he added.

In March indications on budgetary orientation


Gentiloni explained that the European Commission, after the spring forecast, which will arrive at the beginning of May, will take stock of the suspension clause of the Stability Pact, and at the beginning of March "will give preliminary indications on the orientation for the next period and on the parameters it will use to decide on the suspension clause of the Pact. "We must make wise choices on budgetary policies we have already decided that the suspension clause of the Pact will be active for the whole year, but what will happen in 2022?

States need guidance on this front soon. "