Staikouras – Eurogroup: Europe must face four challenges after the pandemic

Minister of Finance Christos Staikouras spoke of four challenges that emerge after the pandemic and that Europe must face collectively to achieve high, strong, and sustainable growth, to create many new jobs and to strengthen social cohesion, arriving at the Eurogroup meeting in Lisbon.

Specifically, the Greek minister stated: “Europe faced the economic consequences of the unprecedented health crisis in a timely and effective manner. This was confirmed by the latest forecasts of the European Commission.

However, we have challenges ahead of us. We are called to tackle them collectively: First, we must continue to align fiscal with monetary policy. Secondly, to shift the temporary support measures towards recovery. Third, to implement the Recovery Fund effectively, as soon as possible, through reforms and investment. Fourth, we need to rethink the framework of economic governance.

“If we implement all these policies, we will achieve high, strong and sustainable growth, we will create many new jobs and we will strengthen social cohesion.”

The agenda

At today’s meeting of the Eurogroup, the first in person since September 2020, the fiscal and macroeconomic perspectives will be discussed, based on the spring forecasts of the European Commission. According to the agenda of the meeting, the possible long-term challenges and effects of the health crisis on the European economy will be examined and ways will be sought to deal with them.

The finance ministers will also be briefed by the relevant institutions on the operation of the joint supervisory and consolidation mechanisms within the banking union.

What is sought in the discussions of the EU finance ministers how to withdraw the emergency support measures for companies and employees during the 14-month health crisis. The transition, in essence, from support packages to measures to strengthen economic activity with particular care to avoid closures and layoffs.

Athens has already embarked on the path of turning to targeted measures, gradually closing the cycle of emergency packages with the Ministry of Finance paving the way for funding and support programs, mainly for the affected sectors.