Edition: International | Greek
MENU

Home » EU Actually

Is Von der Leyen Macron’s mouthpiece?

Governments in EU member states have been given the green light by the European Commission, since the lockdown and the resulting economic damage, to give €1,900 billion in guarantees, loans and gifts to national businesses

By: N. Peter Kramer - Posted: Monday, May 18, 2020

Once again Ursula von der Leyen shows herself to be the mouthpiece of French President Emmanuel Macron. He has pleaded repeatedly on behalf of nine southern European indebted countries for financial transfers from north to south.
Once again Ursula von der Leyen shows herself to be the mouthpiece of French President Emmanuel Macron. He has pleaded repeatedly on behalf of nine southern European indebted countries for financial transfers from north to south.

by N. Peter Kramer

Governments in EU member states have been given the green light by the European Commission, since the lockdown and the resulting economic damage, to give €1,900 billion in guarantees, loans and gifts to national businesses. Under ‘normal’ strict EU single market rules, governments are not allowed to grant state aid to avoid unfair competition between countries; but in today’s special situation the Commission had very little choice but to give consent for it. Merkel’s government used the opportunity and made nearly €1,000 billion available for troubled German businesses.

European Commission President Ursula von der Leyen warned in the European Parliament last week that countries with lower public debt will do best from the Corona crisis. Germany, The Netherlands and Scandinavian member states have, thanks to many years of often severe budgetary policies, money to keep struggling businesses afloat. Southern member states with a high public debt due to years of ignoring such policies, do not have wherewithal

President Von der Leyen pointed out that southern Europe is hit harder by the lockdowns than northern Europe. According to her, therefore, northern Europe must not only save its own economies but also contribute to those in the south. Otherwise businesses in, say, France, Italy and Spain could go bankrupt with northern European businesses having the chance to gain market share in the South. President von der Leyen told the EP, that in the Commission’s opinion, this is a bad thing.

Once again Ursula von der Leyen shows herself to be the mouthpiece of French President Emmanuel Macron. He has pleaded repeatedly on behalf of nine southern European indebted countries for financial transfers from north to south. In the form of gifts of course. He and the Commission President overlook the fact that the taxpayers in the north are also voters, in Von der Leyen’s Germany as well.

READ ALSO

EU Actually

Does Vestager overplay her hand again?

N. Peter KramerBy: N. Peter Kramer

The EU General Court overturned the landmark 2016 decision by EU competition commissioner Margrethe Vestager that Ireland should claw back €13 billion in unpaid taxes plus interest from Apple

View 01/2020 2020 Digital edition

Magazine

Current Issue

01/2020 2020

View past issues
Subscribe
Advertise
Digital edition

Europe

The EU can and must cut emissions by more than 55% by 2030

The EU can and must cut emissions by more than 55% by 2030

The European Commission has proposed to strengthen its 40% greenhouse gas emission reduction target to 50% or 55% on 1990 levels in the next ten years

Business

COVID-19 has disrupted cybersecurity, too – here’s how businesses can decrease their risk

COVID-19 has disrupted cybersecurity, too – here’s how businesses can decrease their risk

COVID-19 is changing everything. Along with social distancing, obsessive sanitisation, broken supply chains, fragmented workforces and the rise of video meetings, the pandemic is driving acute systemic changes in consumer and business behavior

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2020. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron