Europe in the grip of Covid-19
Europe has not exactly covered itself with glory in the Corona crisis; at least not at first. As borders were closed without consultation and individual Member States brought in export restrictions on protective equipment, national self-interest was put firmly before coordinated European action. This damaged the EU’s reputation. Most countries have now realised this and have back-pedalled. And the EU - with only limited competences in the health sector - is doing its best to support and coordinate the efforts of the individual countries. In doing so, however, it is testing its limits, as we can see e.g. from the (current) hostility between the supporters and opponents of using Corona bonds to provide financial support for affected countries. In cep’s view, instead of trying to bring in Eurobonds through the back door, ESM credit lines should be activated. Not only can they be deployed immediately but, in comparison with Corona bonds, they match the purpose, have democratic legitimacy and are sustainable.
Since the Corona crisis is going to keep us busy for some time, we would like to draw your attention to two websites with important information: Here there is a summary from the EU Commission of the measures at EU level and here cep provides information by way of graphs and figures that are updated on a daily basis.
Harald Händel
Head of Communication |
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| Energy Taxation in France |
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The EU Commission is planning an amendment to the energy tax directive. Accordingly, national taxes on fossil fuels throughout the EU should be based on their CO2 content and subsidies should be phased out. Against this background, cepFrance has analysed the current French energy taxation.
...read more |
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| Combating the Corona crisis |
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The economic consequences of the Corona crisis have raised doubts about the creditworthiness of some euro countries. A cepInput comments on the latest ECB bond purchases and gives recommendations on how to deal with the crisis in the euro zone.
...read more |
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"We are only at the beginning of the pandemic and must not be too quick to suspend the measures necessary to break the chain of infection."
Federal Interior Minister Horst Seehofer |
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"We cannot allow this to turn into a fight, still less a war, about protective equipment, respirators and masks."
Federal Foreign Minister Heiko Maas |
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“Initially, Europe as a whole underestimated the speed and extent of the pandemic; that applies as much to the individual EU Member States as it does to the Commission in Brussels.”
cep Board of Directors Prof. Dr. Lüder Gerken |
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| “It would be better if the ECB did not always have to come to the rescue. The ESM’s precautionary credit lines provide us with an instrument that could have been used in this situation.” cep Head of Division Dr. Bert Van Roosebeke |
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EU's main trading partners
Eurostat has illustrated in an interactive tool the main trading partners of the EU in 2019. The graph shows that most imports came from China, while most exports went to the USA. On the site you can view the data for the EU 27 and EU 28, as well as those of the individual Member States.
(Source: Eurostat) |
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