by Deanna Maria R & Emmy Hikins
EURONews Now, reported that economic help for laid-off workers would come in the form of a of €500bn rescue package due to the covid-19 pandemic. Due to the measures taken during the pandemic, unemployment rates are on the rise in EU member states. The package consists of subsidies for employers “to keep workers on the books” and to ease the transition for workers after lockdown measures are lifted.
Two hundred billion euro is also coming from the European investment bank to help support small and medium sized businesses “who are viable but suffering cash-flow problems”. Next, Two hundred and forty billion euro is coming from the European stability mechanism (the EUROZONE bailout fund). Of course there is controversy surrounding the EUROZONE rescue deal. One side wants strict governance applied to businesses receiving such funds and the other side would agree for no conditions when a member state borrowed funds to help related to direct and indirect healthcare costs.
The correspondence then states divisions still exist over what was called ‘corona bonds’. This issue, according to the correspondence, “has not totally been taken off the table” and may be looked at later on. The reporter then states (after making a comment to the correspondence about “fudgery”) that actually, the corona bonds, are neither on nor off the table. She goes on to state that commissioners and others would agree to creating a recovery fund, but the financial aspects would still need to be worked out.
Creative and innovative means could be used in the creation of the recovery fund and Italy chimed in that the corona bonds, in the future, may be a viable way to financially support the recovery fund. The judge finance minister cut them off to state that he would never agree with using the so-called corona bonds, now or in the future. Of course everything boils down to interpretation when dealing with financial aspects coming from government funds.