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COVID-19: Single market must emerge stronger from the crisis, say MEPs
Economic and Monetary Affairs Committee MEPs voiced concerns about the internal market during a debate with Commission Executive Vice-President Vestager on Monday.
- State aid must be temporary, limited and designed to avoid bankruptcies
- Single market, climate and digital goals crucial for recovery
- Striking a balance between strategic independence, trade and open economy
The majority of MEPs perceive the timely state aid schemes as a lifeline for companies during the COVID-19 crisis. However, they stress that all national state aid instruments such as grants or zero interest rate loans must be proportional and allocated in a transparent way.
They also pointed to huge differences between the member states’ fiscal firepower, which is likely to have long lasting consequences on the internal market’s cohesion and asked about the strings attached to state aid such as contributions to the green economy.
Minimising distortion of the single market
Commissioner Margrethe Vestager focused on the recovery package to be presented on Wednesday and the new solvency instrument, which will help recapitalise healthy companies put at risk by the pandemic. She agreed that the single market is crucial for recovery and assured MEPs that state aid is temporary, limited and designed to protect from bankruptcies and lay-offs. Ms Vestager stressed that the new recovery architecture will focus on minimising internal market distortions.
Addressing recurring concerns voiced by many MEPs that the majority of state aid (47%) was obtained by German companies, Mrs Vestager highlighted the interdependence of the EU economy and interlinked value chains. German spending will therefore benefit companies across the EU, she stressed.
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