01 May 2020

Business Europe: Ambitious recovery plan essential to avoid long-term scars to EU economy

Despite the extraordinary efforts of governments and the EU institutions to support businesses and workers through the crisis, Europe’s economic and political environment as we gradually exit from the severe restrictions placed on economic activity is likely to look significantly different to that at the start of the year. In particular, we will see high levels of business bankruptcies, reduced investment plans, high unemployment, weaker government finances, and increased protectionist pressures on both the internal market and external trade. Smart European leadership and efficient forms of solidarity will be needed to recover from this unprecedented crisis and strengthen European sovereignty in the post-COVID-19 world.

Controlling the virus whilst preserving our economies and societies requires, in the first instance, a co-ordinated EU emergency response and an effective risk-based exit strategy.

In addition, the EU and its member states must work with the social partners to immediately define a clear, ambitious, predictable and co-ordinated EU recovery plan in order to give businesses the confidence to keep going through this crisis, ensure that we rapidly address the damage to our economies, and start restoring businesses capacity for investment and employment.

BusinessEurope’s EU recovery plan sets out detailed proposals under 4 pillars which if implemented together can help create a regulatory and fiscal environment for businesses that enables them to invest, grow and create jobs:

• A rapid deployment of EU investment funds as part of an ambitious and co-ordinated EU fiscal stimulus, including immediate agreement on a new and revised multi-annual financial framework (MFF), and a specific European recovery fund to bring new money to the table without mutualising existing debt between Member States*.
• A revitalised and open single market and strengthened single currency, as part of a greater focus on supporting sustainable investment, growth and employment.
• The EU as a leading advocate for rules-based, fair and free trade and investment and a strong supporter of multilateral solutions.
• Strengthened EU governance to ensure EU financial support increases implementation by member states of growth and employment-enhancing structural reforms and upward convergence.

* This paragraph is not supported by the Confederation of German Employers Associations (BDA)

 Business Europe

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