Here, Europe had a great Chance to show solidarity, and to show to all the citizens of Europe that applies the principle “Together we are stronger”. We can prove that our democratic and social System is capable of taking action and in this point, the autocratic is not inferior, and at the same time a higher level of humanity, and Standards to be taken into account.
It is also in the economic interest of the stronger countries of Northern Europe, all members of the EU to overcome the Corona-crisis. The only way the European can be saved in the internal market, the venue for Germany’s so important.
Stay up to 7 trillion less in debt than the U.S.
Overall, the debt of Europe is with the same size of the gross national product of the United States to over 10,000 billion (10 trillion) is lower, and thus, the purely financial point of view Europe is by this amount stronger than the United States. The Corona-Shutdown-costs are estimated to be 10-15 percent of the gross national product and total in Europe on a 2 to 3 trillion euros.
- The economic and financial consequences of the Corona-crisis in the News Ticker to the Corona Crash
If we are at fault for these debts in the collective, that is to say about our States, and the composite record, we are still 7 trillion less than the United States. The good news is that Europe is financially, humanly, and organizationally able to manage this stress test is better than all the others. This will strengthen Europe’s role in the world continues to be to our advantage and to the advantage of our partners.
We must respect the different Debt levels continue to
but The Problem is that a mutualisation of debt would be unjust, and the low-indebted countries will not be accepted. Imagine a family where everyone has different debt and suddenly is explained, starting tomorrow, you’re in debt all the same. This would amount to a partial expropriation of the half of the family members and is also emotional, because those who feel particularly industrious, and now have to experience that the less Diligent are rewarded.
Martin Schoeller, Dipl.Ing. ETH, for more than 35 years, the Schoeller group in Munich, together with his brother Christoph. From the small family company is an industrial and services group created with approximately 4500 employees and over 1 billion in sales. Schoeller is at the same time, the Executive Committee of the Bavarian family entrepreneurs and co-founder of the Munich conference.
so What must do for a family in such a case? You must respect the different Debt levels further, but for problems create a Fund of solidarity, which must rely on all of them in the same way. For this, we have in Europe, the EIB, the ESM and the European Commission. All three institutions are able to offer in the framework of their respective mandates, aid in Overcoming the Corona-crisis. The EIB is planning additional financing for SMEs, the Commission may align its budget in the next few years more than previously planned on Overcoming the economic crisis.
It helped, but not unconditionally
The ESM is a Fund for Notgelder, without the principle of responsibility and possession of the Elevator stand. He currently has an unused lending capacity of 410 billion euros, which should be used for Overcoming the current crisis. The countries that get help, you need to give them certain reforms and voting rights. It is not helped – but unconditionally. So it is also in a family.
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The Alternative is the ECB, all countries, by any repurchase of the state bonds, any amount of money, is a worse Alternative and will lead to a loss of confidence in the Euro. The ESM has done under Mr Regling is already in the Greece crisis is Large, you will hear nothing more about Greece, Spain, Portugal and Ireland, and can be used as the core building block for the European cohesion considered. the , The ESM has already made public in the FAZ aware of.
All Europeans are liable in the proportions of the populations
It has been around for decades-specific “joint debt” (some call them Eurobonds) of the 27 EU-States or the 19 Euro area countries. The EIB is issuing for decades, bonds guaranteed by the EU member States together. The Commission makes the since 1972, and the EFSF/ESM since the Euro crisis. A total of more than 800 billion euros in European bonds are running at the time. This amount can, and must, of course, be increased in the light of the Corona-crisis. For this purpose, all Europeans are liable in the proportions of the populations and not the Germans disproportionately.
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in the Short term, i.e. in 2020, this is only possible by existing institutions and instruments are used. In the longer term, the Commission (use of the new EU budget), the EIB (through capital increase) and the ESM can do much more. The borrowers pay the interest and must respect the other conditions; the interest rates are extremely low, even if still somewhat higher than German government bonds.
Then, Europe can demonstrate internally and externally the large value of the array. This would go down as a great success and a great strength for Europe in the story and the populists, the national self-interest against the community’s thoughts build up, the craft set.
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*The article “Europe before the populists save: We need to help, but not unconditionally” will be released by The European. Contact with the executives here.
