Financial stability must also be put at the heart of

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Financial stability must also be put at the heart of people. This includes revision ofbudgetary policies where health is to go hand and hand, social welfare and the possibility ofbreaking the Covid-19 protocol in the hunt for food if the population cannot be guaranteedtheir financial security during this pandemic. It would suggest zero expenditure on existingprevention programs. As a consequence, diverted discretionary funds to health and socialprotection would mean that the war against the epidemic's expansion is carried out in amanner that maintains residents' financial well-being at the forefront. Wage subsidies are stillrequired, particularly for those employed directly affected by the pandemic and consequentlylosing their employment as a result of the epidemic.The effect of Covid 19 on trade and travel demonstrated the need for Italy andEuropeans to invest and maintain local factories (to generate the country not onlyemployment but also essential products to better cope with the shocks associated with closingforeign borders).
496.4. Policy ImplicationsFirstly, before the COVID-19 crisis does not affect the scale of the financial shockfaced by the EU countries as a result of the pandemic, the level of public debt suggests theactive ECB pandemic emergency acquisition scheme, which opened in March 2020. Thewillingness of policymakers to take budgetary steps to curb the COVID-19 crisis did notseem to have been affected, except in the eurozone, where, after the financial crash a decadeago, many nations were cut off from exchanges. While PEPP is a transitional strategy, theECB's governing council stated before concluding that the crisis was over. At all events, notbefore the end of June 2021, that net asset sales under the PEPP will be terminated. Sixhundred billion euros expanded the PEPP envelope in June 2020 to a total of 1350 billioneuros. This should be enough to guarantee that policymakers can support their economiesduring the recession. Still, a rise will and should not be avoided if the crisis takes a worseningturn.Second, the COVID19 crisis has severely hit all EU nations, not just euro areaparticipants. According to our estimates, the EU countries' overall GDP loss in 2020 would beequivalent to 10%, with no loss of less than 6%. As a consequence, EU leaders were right inagreeing to establish a fund for the rehabilitation of all EU countries. Third, althoughfinancial shock affects all EU countries, some were affected more than others. Any countriesin the south will experience over 12 percent GDP loss in 2020, while those in the north willsee 'just' about 7 percent of GDP losses. Therefore, it was true that EU leaders accepted thatcertain countries could aid rather than others with the Recovery and Resilience Fund (RRF)and that some southerners would prosper the most.

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Term
Fall
Professor
NoProfessor
Tags
Pandemic, pandemics, 1918 flu pandemic

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