ifo President Fuest Welcomes Franco-German Initiative
The ifo President Clemens Fuest has welcomed the Franco-German aid initiative. “It’s terrific that Germany and France are presenting a joint proposal for how the EU should respond to the coronavirus crisis. Establishing a European fund to promote economic recovery is an important sign of Europe’s solidarity and its ability to take action,” he said in Munich.
“It’s important for these funds to add value beyond that of the programs of individual member states,” Fuest continued. “This added value can come in the form of greater certainty and stability. All of Europe has an interest in helping those countries hardest hit by the crisis. In addition, there is a considerable demand for investment in cross-border infrastructure, such as for transport and communication networks.”
Fuest added: “Crucial aspects of the fund are that its debt financing is a one-off event and that there is a repayment plan. Repayments should begin once the economy has recovered. Following the necessary increase in sovereign debt during the coronavirus crisis, Europe must have a credible roadmap for reducing its debt ratios.”
