It allows the EU to turn the huge prison sentence it experienced in 2020 into a big difference in 2021. That is, after the experience of severe prison operations forced by the Govt-19 epidemic, countries have long been at risk of entering the process of economic disparity which is evident in the form of increased inequalities between countries and within each state. The warning was issued this Monday by the director general of the International Monetary Fund, Kristalina Georgieva.
Georgieva’s “biggest concern” is that “the big 2020 prison will be a big difference in 2022”, the president agreed in a speech to European Parliament week, organized this year in virtual form due to Govt-19.
After the countries supported the economic struggle caused by the epidemic, they are preparing to enter into a recovery process, but it is fraught with risks. The biggest is diversity and growing inequality. Georgia immediately recalled that not all countries were affected in the same way by the epidemic: those who relied heavily on tourism suffered more than those who experienced more than the average recession. The head of the International Monetary Fund gave the example of Spain, Greece and Italy. He did not talk about Portugal, but the Portuguese economy also fits this interpretation because it shrank to 7.6% last year, which was higher than the EU average of 6.4%.
Similarly, Georgieva noted that the countries of Central and Eastern Europe are expected to be three times more affected by 2022 than the most advanced economies of the European Union.
In response to this difference, the head of the International Monetary Fund said he considered three measures fundamental: First, he emphasized that “increasing the production and distribution of vaccines is very important.” Although the epidemic has not been tackled globally, he explained, “we are at risk of new mutations that threaten progress, even in some parts of the world where epidemics are highly controlled.” To increase productivity, “cooperation” is needed, he defended.
Second, there is a need to continue to support organizations and families “until the epidemic is over”. “Gradual withdrawal [dos apoios] It should be followed, but not before the “exit from the health crisis”. Pre-tightening policy while the most vulnerable economies are still weak could exacerbate differences between countries, ”he warned.
On the other hand, in the meantime, nations should seize the opportunity to promote bankruptcy regimes. Kristalina postponed her support for 2020, which may now work.
Finally, he stressed that this is “the most important point in the long run” and that it is important to promote digitalisation and structural change for the green economy. The International Monetary Fund estimates that a combined investment in green infrastructure could boost global GDP by 0.7% a year.
At this point, he argued, the next generation EU could be more than a plan to promote economic change: “it could be the forerunner of the new shared budget tools for fulfilling the ECP’s monetary policy.” “The EU can take new steps towards the Banking and Capital Markets Association to promote growth and integration,” said the head of the International Monetary Fund.