At the most recent meeting of the Eurogroup, a concept for a new Sure was presented. Germany is under scrutiny because of its unilateral energy policies.
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| [Energy prices in Europe] |
A Europe that is split on the remedy that should be implemented to combat the costly bills might perhaps align themselves around the new Sure. The re-creation of the experiment that was initiated during the pandemic as a "EU redundancy fund" would make it possible for member states to access a maximum loan that is guaranteed by all twenty-seven countries that are a part of the Union, and as a result, they would be able to distribute "fresh" money to families and businesses that are struggling. The concept was discussed at the conclusion of a conference between the finance ministers of the Eurozone, which brought to light another noteworthy fact: Germany's isolation due to the adoption of its own national crisis response plan.
Paolo Gentiloni, the European Commissioner for Economy, issued a warning about the possibility of fragmentation at a news conference. "We must be aware that there is a danger of fragmentation," he said. Despite European solidarity and the existence of a single market, several ministers expressed concern before the Eurogroup meeting that took place in Luxembourg yesterday about the potential for individual nations to respond to the recent spike in electricity prices using their own unique formulas and, as a result, to rely on their own unique financial dispensations. The guest of honor in these concerns is Germany, which, with its planof 200 billion (borrowed on the markets at an advantageous interest rate thanks to the German triple A rating), could create imbalances in the EU, with German companies backed by Berlin having a better ability to compete than those of countries that cannot afford support interventions of the same type.
Immediately after the protests raised by the Italian government, which brought to light the dangers that the German proposal had for the whole EU, those of the other member states were voiced. It should not come as a surprise that in the final paper of the Eurogroup meeting, a reference is made to the need of "coordinating our steps to protect the level playing field and the integrity of the single market, particularly by abstaining from detrimental tax changes." But what are some of the other options for the EU?
Recovery-bis has been evoked several times in recent months as one of the interventions at the European level against expensive bills. Recovery-bis is a re-edition of the Next Generation EU plan (better known as Recovery Fund), which was introduced to stem the economic effects of the pandemic crisis and allow EU countries to get their economies back on track. Among the interventions at the European level against expensive bills, a Recovery-bis has been evoked several times in recent months. However, the skepticism of various governments for such an expensive intervention both in terms of resources (the first Recovery has a cost of approximately 800 billion euros) and time (to allocate and spend the resources it is necessary for each government to present its own Pnrr, which then it must be approved in the EU) has pushed the debate towards another solution. This is because the first Recovery has a cost of approximately 800 billion euros.
In a letter to Corriere della Sera that was also signed by the Commissioner for the Internal Market, Thierry Breton, Gentiloni stated that Plan B to develop a European action against expensive electricity could be a new SURE, or a loan guaranteed by all Member States, on which national governments could draw "to help Europeans and industrial ecosystems in the current crisis." In the spring of 2020, the first Sure was created as an instrument of temporary support to lessen the dangers of unemployment in Europe. Its purpose was to assist the nations who were impacted by the pandemic in protecting jobs by giving assistance in the form of redundancy compensation.
The first SURE program had a budget of 98.2 billion euros, and it has been extensively used by member states, who have borrowed around 91.8 billion euros so far. Money that will in any event be reimbursed in the following decades by EU members, but at a highly beneficial interest rate (particularly for states with a high level of public debt), decided by a unified Europe that has guaranteed for everyone. As a result, the concept of emulating the Sure model was conceived with the intention of achieving a dual purpose: reducing the burden of costly bills and reiterating Europe's commitment to ensuring that it does not fall farther behind its less developed neighbors. The leaders of state and government will gather in Prague on Thursday and Friday for an informal summit, which will serve as the first test of how well this concept works.