President of the European Commission considers that differences from the last crisis are “marked”. If in 2008 it took eight years for the eurozone’s GDP to recover, this time, it is expected that by 2022 all member states will recover.
The president of the European Commission, Ursula von der Leyen, said this Wednesday that 19 member states of the European Union should reach pre-pandemic values this year. Ursula von der Leyen considers that the differences with the last crisis are “marked” and added that she will relaunch the discussion to review economic governance.
“In the last crisis [of 2008], it took us eight years for the eurozone’s GDP to recover pre-crisis levels. This time, we expect 19 countries to reach pre-pandemic levels this year and the rest should do so next year. ” Ursula von der Leyen said at the State of the Union debate in Strasbourg.
Ursula von der Leyen also stressed that growth in the eurozone has accelerated in recent months “more than in the United States and China”. “The lessons of the financial crisis can be a lesson to us. At the time, we declared victory too early and we paid a price for it. We don’t want to repeat that mistake,” she said.
With the Recovery Plan, the European Commission “will invest in short-term recovery” and “long-term prosperity”. Ursula von der Leyen also believes that, with the millions of the so-called European “bazooka”, member states will be better able to “respond to structural issues in the economy”, such as labor issues and reform of pension systems.
“We learn from the lessons of the past when we acted divided and too late. The differences are striking,” she said.
The president of the European Commission also warned European leaders to be “attentive” to how the crisis caused by covid-19 affected the economy, with “the increase in debts, the impact on different sectors and new ways of working”.
To that end, the Commission led by Ursula von der Leyen will relaunch the discussion on the review of economic governance in the coming weeks. “Our intention is to find a consensus on how we should move forward, even before 2023,” she said.
Source: with agencies