Thread by @Europeripheral, The Eurogroup are masters of the press release. The output of yesterday's [...]

The Eurogroup are masters of the press release. The output of yesterday's meeting has 23 points, the first 3 of which are "whereases", the next 8 stuff already done, often by other institutions, and the last one says "will pursue the work needed" 1/- https://www.consilium.europa.eu/en/press/press-releases/2020/04/09/report-on-the-comprehensive-economic-policy-response-to-the-covid-19-pandemic/

Report on the comprehensive economic policy response to the COVID-19 pandemic

On 9 April 2020, the Eurogroup in inclusive format endorsed a report on the comprehensive economic policy response to the COVID-19 pandemic.

https://www.consilium.europa.eu/en/press/press-releases/2020/04/09/report-on-the-comprehensive-economic-policy-response-to-the-covid-19-pandemic/

point 12: we're ready to step up, waffle waffle 2/-

point 13: we welcome the Commission’s proposals regarding the further temporary flexibility in the use of EU funds...

welcoming something they have no power to stop, waffle waffle 3/-

point 14: Mark Rutte's "gift not transfer"

"This instrument can at this stage provide support of EUR 2.7 billion from EU budget resources. Its firepower can be strengthened rapidly, through additional voluntary contributions from Member States"

0.02% of GDP 4/-

point 15: We welcome the initiative of the EIB Group to create a pan-European guarantee fund of EUR 25 billion, which could support EUR 200 billion of financing for companies with a focus on SMEs, throughout the EU, including through national promotional banks. 5/-

At least the eurogroup has a say here since the EcoFin also wears the hat of supervisory board of the EIB 6/-

This may be an example of a Juncker-style magic de-risking guarantee multiplier, but €200bn of EIB lending from €25bn could also be achieved by simply recapitalising the EIB (capital ~ 1/8 of risk-weighted assets, assume 100% risk weight) 7/-

point 15 (cont): We invite the EIB to operationalize its proposal as soon as possible and stand ready to put it in place without delay, while ensuring complementarity with other EU initiatives and the future Invest EU programme.

In English: the EIB hasn't said how it'll work 8/-

This is what the EIB has said: https://www.eib.org/en/press/all/2020-094-eib-group-moves-to-scale-up-economic-response-to-covid-19-crisis

point 15 (end):

preserving the level playing field of the single market

Are we playing bullshit bingo, now? 9/-

EIB Group moves to scale up economic response to COVID-19 crisis

The Board of Directors of the EIB today discussed the creation of a €25 billion guarantee fund to enable the EIB Group to scale up its support for companies in all 27 EU Member States by an additio...

https://www.eib.org/en/press/all/2020-094-eib-group-moves-to-scale-up-economic-response-to-covid-19-crisis

point 16: rename ESM a "safety net", establish a "pandemic crisis support".
* available to all euro area Member States
* standardised terms agreed in advance by ESM Governing Bodies, reflecting the current challenges, on the basis of up-front assessments by EU institutions. 10/-

point 16 (cont): use money for Covid-19 health care
* 2% of GDP - Spain: €25bn
11/-

point 16 (cont): "With a mandate from the Leaders"

are they asking for a mandate? didn't they have it already?

"we will strive to make this instrument available"

Jedi tip: do it or not, don't strive

"within two weeks"

I though the two weeks were already up? 12/-

point 16 (cont): "respecting national procedures and constitutional requirements."

Bundestag still gets to insult Italy on prime time V before voting to deny credit line.

"The credit line will be available until the COVID 19 crisis is over."

Better apply quickly! 13/-

point 16 (cont): "Afterwards, euro States would commit to strengthen economic and financial fundamentals, consistent with EU economic and fiscal coordination and surveillance, including flexibility by EU"

Smells like post-programme austerity spirit 14/-

point 17: welcome SURE short-time work reinsurance scheme from Commission.

(this is something they have a say on, it is a proposal for a Council Regulation) 15/-

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2020%3A139%3AFIN

point 17 (cont): We will strive to make the instrument operational as soon as possible.

Jedi tip: do it or don't, don't strive.

Actually, just do it. Vote to approve the proposed Council regulation and endow the respective 0.7% of GDP 16/-

point 17 (cont): Consistent with its legal basis, access to the instrument will be discontinued once the COVID-19 emergency has passed.

Better press for Germany and the Netherlands not to drag their feet.
Better apply for funds quickly, @joseluisescriva 17/-

point 18: We agree that a coherent strategy in the EU is needed

(wow, am I glad to hear that. An incoherent strategy would be really unfortunate) 18/-

point 19: French recovery fund. Agreed to work on it.
Funding through the EU budget

discussions on the legal and practical aspects of such a fund, including its relation to the EU budget...

Wait, what was that about coherence? 19/-

point 19 (cont): Subject to guidance from Leaders

(I thought they already had a mandate?)

discussions on the legal and practical aspects of such a fund ... will prepare the ground for a decision 20/-

point 20: multiannual financial framework will have to reflect the impact of this crisis and the size of the challenges ahead

I don't think they mean they are increasing the EU budget from 1% to 10% of GNP, are they? 21/-

point 20 (cont): We welcome the Commission’s intention to adapt its MFF proposal to reflect the new situation and outlook.

Ding-dong, the European Green Deal is dead! 22/-

point 21: roadmap for recovery

(remember the coherent strategy for relaunch of economic activity and investment?)

high quality job creation and reforms to strengthen resilience and competitiveness, in line with a sustainable growth strategy

(dude, where's my investment!?) 23/-

point 21 (cont): relaunch our economies whilst promoting economic convergence and reducing fragmentation resulting from the crisis, including rapid restoration of the full functionality of the Single market.

(ask for investment, get competitiveness and convergence. Again) 24/-

Fool me once, shame on the New Hanseatic League. Fool me twice, shame on...

at least Bush the Lesser had the sense to exclaim "I won't get fooled again!" 25/-

point 21 (end): The Eurogroup stands ready

26/-

point 22: Today we are engaged in an effort to safeguard the health and lives of European citizens and to tackle the immediate economic challenge

(good)

This includes the fiscal means Member States need to finance the necessary measures.

(saying it doesn't make it true) 27/-

point 22 (cont): The recovery of the European economy poses a big challenge.

(ya think?)

We will act together in solidarity and we will deliver. This includes the necessary progress in strengthening the European Union.

(ya hope...) 28/28

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