The expansionary fiscal policies supported by Commissioner Gentiloni have prevented an even larger shock to the economy and have ensured addressing social issues remains a priority for Member States.
PES President Sergei Stanishev said:
“We welcome the efforts being made by Paolo Gentiloni to support European economies in these uncertain times. He is right to defend common sense: fiscal measures should not undermine stability and recovery.
“Taken together with Next Generation EU funds and the Recovery and Resilience Facility, flexibility will support investment in Member States. This is essential in the immediate and longer-term, for the recovery and smooth environmental and digital transitions.
“Today’s communication sets the right tone to achieve a sustainable economic recovery and it paves the way for a review of the Stability and Growth Pact.”
The EU Commission’s forecast projects further contractions in the first quarter of 2021, and Eurostat also underlines the depressed economic activity in the first months of this year.
The crisis is affecting all Member States, but some will be able to recover faster than others. Countries that rely heavily on certain sectors, such as tourism, have taken a bigger hit. This means continuous flexibility is key to ensure a fair recovery.
On recovery funds, socialists and democrats are calling on national parliaments to ratify the own resources decision without delay. This will allow the Commission to raise the recovery money on the markets so that the first disbursements can be made next summer.
Ensuring long-term sustainability and the wellbeing of society must be central to the recovery. Austerity – which proved to be a massive mistake in the past – must not be repeated. Progressives urge the EU to think of the future and next generations, and to come forward with a sustainable debt management strategy.