Coronavirus: another cash injection necessary?

Amid a wave of new and partial lockdowns in countries across Europe, the economic consequences of these drastic measures are under scrutiny again. There is a consensus in Europe's press that additional support measures are needed, but not on whether more recovery funds are the right solution or on who should receive funding.

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L'Opinion (FR) /

Europe must prop up the economy

The EU member states must provide massive economic stimulus, urges Didier Saint-Georges of the French asset management firm Carmignac in L'Opinion:

“It would be extremely unfortunate if the resistance of the notorious 'frugal' countries to the 750 billion-euros European recovery programme is not overcome. This programme is already too timid, all the more so in view of a second wave the epidemic that looks set to slow down the hoped-for economic reopening. Debt burden is a serious problem. And it won't be solved by sacrificing the denominator in the debt/GDP ratio. China has understood this, the US may soon follow, and Europe too must learn lessons from the past.”

Rzeczpospolita (PL) /

Quick help without additional costs

If Poland's government turns the right screws now it won't even have to inject fresh money into the economy, argues Rzeczpospolita:

“Aid is urgently needed. However, this is not about the government doling out money as it did in the spring (even to those who didn't need it). It's about tax amendments that allow companies to maintain their financial liquidity. Entrepreneurs above all want VAT to be refunded faster. ... These are changes that will not burden the national budget. It's not necessary to set up special funds for which additional costs are incurred. Companies simply need to get their money back faster, so they can spend it on salaries, for example.”

Expresso (PT) /

Businesses don't starve

Portugal expects a pandemic-related recession of up to ten percent, and is currently debating how the funds from the state budget should be used in 2021. For Expresso the priorities are clear:

“Of course, we can and should discuss Keynesian policies or economic incentives when considering the national budget. However, we must not forget that in the meantime there are families that are on the verge of going under. Businesses don't starve. They can go bankrupt or walk around like living dead, but they're just legal entities. ... People, however, may be left living in dreadful circumstances and even starve to death if nothing is done to prevent it.”