PARIS, Mar 31 (Reuters) – The speed with which European governments can implement their shared recovery plan in the EU is now more important than its volume, ECB Governing Council member Francois Villeroy said on Wednesday of Galhau.
The Administration of US President Joe Biden has already begun to distribute the funds within the framework of a new stimulus program against COVID-19 worth 1.9 trillion dollars, which has raised doubts in Europe about the scope of the recovery fund of 750,000 million euros (879,000 million) agreed by the European Union last summer.
“For us Europeans, our main problem now is not the scale of our fiscal response, but the speed of its execution,” Villeroy said in an online address to the College of Europe.
“Speed, once again, is our collective handicap. Governments now have to implement the recovery plan they have agreed upon and they have to do so urgently,” he added.
EU Member States still have to come up with comprehensive plans on how they intend to spend the money from the one-off stimulus fund for all 27 countries, which has yet to be ratified by many of them.
The European Commission and governments also have to agree on structural reforms, while domestic politics in some countries have raised concerns about possible delays.
Meanwhile, the German Constitutional Court issued an injunction on Friday against the signing in Germany of the EU law on the merits, due to an emergency appeal brought against it by the far-right Alternative for Germany (AfD) party. and a group called Alianza de Voluntad Ciudadana.
According to Villeroy, proper fiscal discipline is essential to cope with economic crises, and next year, after the German and French elections, it will be time to hold a debate on the European Union’s fiscal regulation, the Stability Pact. and Growth.
“We still need rules, but revised and simplified,” Villeroy said.
(Reported by Leigh Thomas; edited by Catherine Evans; translated by Flora Gómez at the Gdansk newsroom)