Brussels hopes the larger role of the state in the economy will continue after COVID

Brussels, June 29 (EFE). – The European Commissioner for the Economy, Paolo Gentiloni, said on Tuesday that he hopes that the greater role the state has played in the economy during the pandemic will continue, albeit at a slower pace, once the health and economic crisis passes.

The Social Democratic politician declared during the Economic Forum in Brussels that “the role of public intervention of the state will decrease and will be more selective, but it will remain and this is something different from what we had before the crisis.” regulated by the European Commission (EC).

Another element that Gentiloni says will determine the economic future is sustainability, “which has become an overwhelming and critical issue worldwide.”

He also noted the new global tax rules currently being negotiated internationally, “in terms of reallocation of tax rights and at the end of the race to the bottom” in minimum tax rates.

Fourth, he noted the importance of the new rules for climate and digital transformation.

“If you take these four elements, if you are able to achieve results in those elements, and of course the European Union (EU) will be a major player in all of these sectors, I think maybe in a few years someone will say we have a new model..economic.. we will see “.

He added that at the moment he is not only seeking to restore the level of economic growth before the crisis, which will happen in the European Union, depending on the countries, between 2021 and the end of 2022, but the “real challenge” is “to rebuild better”.

In this sense, he referred to sustainability, inclusivity, digital competitiveness or new jobs.

“Will this new way be able to better build our societies to take care of the social groups most affected during this crisis?” he asked. Among those groups, among those groups were young people, women and the elderly.

The former Italian prime minister admitted that lessons had been learned from the previous financial crisis, noting that the European Union was then accused of providing a response “too small and too late” and asserting that with the European Recovery Fund it aims to “counter the risk (emergence) of very large differences between Member States”.

He added that a pandemic was emerging in the eurozone with public debt of up to 102% of GDP.

He stressed that the cost of this debt is not comparable to what it was in the 1990s, but urged attention to what is happening “especially in the United States with inflation and interest rates.”

“We made the right choice in providing a supportive response. I think we were right in saying that we should maintain that support as well next year, of course, in a more selective way if the situation is going well, and it seems to be going well towards recovery” .

Meanwhile, he asked to be “cautious” with fiscal policies and to review society’s rules on controlling deficits and public debt to make them “realistic to address this new situation”.

He commented, “Reviewing standards is always a difficult task in Europe. We have to build consensus, but we need common standards that are applicable and useful in the dual transitions (green and digital)”.

The European Commission plans to launch the debate on the revision of tax rules in the second half of 2021.

Upon the arrival of Joe Biden to the White House, he considered that Washington’s return to multilateralism and transatlantic cooperation with the European Union “are critical if we are to design this new economic model together.”

He added that US recovery plans would also stimulate the economy of the 27.

In the digital sphere, I recognize that the EU can not only be the “regulatory queen” of new technologies, but it must also be “more competitive” in this field. EFE

jug / mb / may

(More information on the European Union can be found at euroefe.euractiv.es)