The recovery fund agreed between EU leaders on 21 July is a big step forward for the European Union’s structure. Unfortunately, it is still an insufficient contribution to the post-pandemic European financial system and the path towards a low-carbon economy. More innovative monetary policies by the European Central Bank will still be needed to complement the EU’s recovery fund in the future.
To avoid leaving the European Central Bank (ECB) at the endless mercy of legal uncertainty surrounding its mandate, it is urgent that EU leaders finally engage in a long overdue revision of the EU Treaty’s monetary financing prohibition rule.
The European Union (EU) is pretending it will unlock trillions of Euros to address the coronavirus crisis. But if we look closer, we realise this is too little, too late, and will only drive countries already struggling into further debt.
Several NGOs including Positive Money Europe are demanding that the central banks’ green finance forum step up their work to make sure emergency measures taken by central banks against Covid-19 do not harm long-term climate action.
This week the Dutch government blocked a proposal to activate a special credit line for countries who need financial support to fight the Covid19 crisis. But the logic behind the Dutch position is backward-looking and lacks diplomatic tact and political leadership.