This is not the time to ease support for the economy in Europe. The wounds left by the Covid 19 pandemic and the lockdowns in over a year are deep and will take time to heal, even if the outlook is positive. The growth estimate in the Eurozone is + 3.8% this year: “Let’s see if in the coming weeks they will be confirmed or if the new restrictive measures can have an impact, but I think they will be confirmed overall,” said the EU Commissioner for Economy, Paolo Gentiloni, on Saturday at the Ambrosetti workshop dedicated to financial issues.
The push to stop the ban on state aid
The support plan from Brussels is therefore destined to continue “in the time and in the necessary ways”. In terms of fiscal aid, a decision will be made in May and “I think it will be decided to continue until the end of 2022”, just as it will be necessary not to go to “premature crises. The quality of the national plans of the next generation Eu will be fundamental “. Although – highlights the former prime minister – «I would not underestimate the first part of the response that we were able to give immediately, such as the extraordinary acquisitions program of the ECB in March last year. The decision to suspend tax rules and state aid was also important “which” made it possible to disburse three trillion euros of state guarantees to companies, with the effect of the lowest number of bankruptcies in 2020.
The ECB: monetary conditions remain favorable
Also from the member of the ECB board, Philip Lane, comes the appeal not to let our guard down: “It is essential that the ECB plays a role of stabilization and strengthens confidence by committing itself to preserving favorable financing conditions”. Among the measures to be renewed are the moratoriums on loans and mortgages expiring in June, recalled yesterday the secretary of the PD Enrico Letta, also at the workshop: “We need to find a form of extension, and then support for the business system, especially of the SMEs that today are in great difficulty ».
Brunetta: the simplification decree in mid-April
But we still have to think about the future, about how to recover from the debts (today the GDP ratio in Europe is “equal to or greater than 100%” but in doing so it will be necessary to avoid “the fall in public investments”. the Minister of Public Administration, Renato Brunetta: “We are one step away from the rebound, businesses feel it and so do the citizens. This means investments, consumption, more income and trust. But all this is not enough if we do not accompany with the right decisions” such as the reform of the “nineteenth-century” public competitions that will be launched in mid-April in the simplification decree. A strength in the recovery, according to the entrepreneurs who participated in the workshop, is Mario Draghi: in an Ambrosetti survey, 90.9% positively the executive.