Last week, the European Commission presented an ambitious recovery plan, including a new instrument ‘Next Generation EU’ to boost the EU’s spending capacity. The Commission’s proposal aims to tackle the ripple effects of the COVID-19 crisis on the European economy and puts forward an unparalleled financial commitment, along with strong policy measures to strengthen the Single Market as well as to enable the green and digital transformations. It has the potential to be one of the engines that will restart Europe’s economy, creating new jobs and prosperity to benefit all citizens. However, there is still a tough balancing act in front of us, which requires management of the short-term economic impact of the health emergency, while laying the foundations for what is coming next. 

AmCham EU has published a statement on the proposal last week and will continue to support policymakers throughout the entire recovery phase, therefore we have put forward some short-term recommendations to ensure that Europe does not stall on its road to recovery.

The crisis is far from over. As it evolves, new challenges emerge. Member States must tackle the effects of containment on households and businesses and develop exit strategies to allow for economic activity to start again after weeks of ‘lockdowns’, while continuing to protect the health and security of their citizens. The road to economic recovery will be long. The difficult task ahead for leaders in Europe, and around the world, is to continue to address all these issues simultaneously.

The EU economy’s ability to bounce back will undeniably depend on the success of crisis response measures. Short-term measures will need to be complemented by long-term policies and investments, the combination of which should support the new European economy that is both green and digital.