Wednesday, November 30

The EU and the IMF warn of the omicron threat to the recovery and the increase in inequalities

The coronavirus is exacerbating inequalities in the world. And the new variant, omicron, threatens to drag down the recovery. These are some of the conclusions of the Eurogroup and the IMF, which met this Monday in Brussels. “New risks are emerging, new variants of COVID, which reminds us that public support is still necessary,” said the president of the Eurogroup, Pascal Donohoe: “We should continue to monitor their evolution very carefully.”

The director of the IMF, Kristalina Georgieva, has affirmed, after participating in a meeting with the Eurogroup [los ministros de finanzas de la zona euro]: “Although the recovery is strong, it is likely to be uneven across countries and sectors, which may increase inequality and disparities between and within countries. The uncertainty is exceptionally high and is largely related to developments and the legacy of the pandemic “.

The Eurogroup’s conclusions, meanwhile, state: “Although the recovery is strong, it is likely to be uneven across countries and sectors. It may increase inequality and disparities between and within countries. And even more significant uncertainty follows. being exceptionally high and is largely related to the evolution and footprint of the pandemic. But we are all familiar with the new concerns about the variants of COVID 19 considering the strength of the recovery, but also the recently accentuated risks in relation to with the pandemic. Member States should be agile in their political responses. ”

For her part, the economic vice president, Nadia Calviño, stated upon her arrival in Brussels: “Spain has very high levels of vaccination and we have a more positive outlook for the moment in these new circumstances, and a positive outlook for the future due to regarding the possible impact of the pandemic. ”

Spain issues 25% less debt

Calviño, in addition, has announced that the Government will “do without the last issuance of public debt of bonds corresponding to this year, with which the net debt issuance of the Kingdom of Spain during 2021 would remain at 75,000 million euros.”

“This is 25% less than what we had anticipated at the beginning of the year,” said the vice president: “Our forecast points to a net debt issue for 2022 in the same environment, and represents a reinforcement of that responsible fiscal position and prudent that we have been developing by the Government of Spain from the first moment. And it also reflects the acceleration of the economic recovery that all the indicators show us “.

Regarding the deadlines to receive the 10,000 million euros of the first tranche of the recovery fund – apart from the 9,000 of pre-financing delivered this summer – whose approval was given by the European Commission last Friday, Calviño has been optimistic that they will arrive before the end of the year, in line with the Government’s budget: “We have reached a very important milestone. The positive evaluation of the European Commission is essential to be able to start this process. The European Commission has not exhausted the deadlines that They were planned, precisely because we have been working very intensively with them for many months and it was very clear that Spain was meeting the milestones, which has allowed us to speed up the entire procedure. [por el lunes] and tomorrow we are going to finish talking with all the Ecofin colleagues with the aim of having that meeting of the Economic and Financial Committee [que dé el visto bueno definitivo por parte de los 27] before the end of the year and that the disbursement occurs as soon as possible “.