“As long as the Kovid-19 pandemic remains a mere memory, the danger to the European economy will not end. In addition, the unequal impact of the crisis and the otherwise disbursement of aid could create “regional fluctuations” within Europe, threatening the bloc’s unity, alarming warning to the OECD, the Organization for Cooperation, and economic progress.
“A weak recovery will exacerbate inequalities, which in turn will erode dissatisfaction and confidence in the European Union,” says a recent survey by the Economic Organization focusing on the impact of the pandemic.
The analysis says that “crisis scars will be abandoned and old wounds will be reopened. In addition, the unequal regional impact of the epidemic will widen the gaps in the EU and widen the gap between large cities and rural areas.”
According to the latest OECD figures, EU growth in 2021 is expected to reach 4.2% and 4.4% next year, respectively, after declining to -1-11% of GDP among all member states by 2020. The only exception is Ireland. But there are still many “risk” factors that can weaken or disproportionate this recovery.
“European leaders have dealt well with the economic impact of Covid-19, which has learned lessons from the 2008 crisis and adopted bold policies such as joint lending,” said Agency Secretary-General Mathias Korman.
But Korman himself urges governments not to be complacent, because “it’s time to face the structural challenges of the long haul and the new generation, leading to strong railroads for the European Union and the Eurozone in the future.”
For this reason, the OECD underscores, “It is essential to avoid past mistakes, for example, the removal of grants and grants. Avoiding premature consolidation, monetary policy should continue to support relevant sectors until recovery is sustained.
Another recommendation relates to the stimulus to improve European economic architecture, especially with regard to tax laws, which are now complex and different from country to country.
Countries that need to recover from the crisis because no one should be left behind. OECD
Finally, “with the help of promoting industrial innovation, digital technology, renewable energy, and cross-border infrastructure, interconnected power grids and charging stations for electric vehicles should be given priority.
Even poorer areas should be helped to improve their production systems, for example by improving teleworking or internet access in non-urban areas.
“Only through these rational reforms – Korman concludes – can we emerge strong from the European pandemic, playing a key role in building a strong and sustainable global economy.”
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