EU Economy Ministers warn of the risk of fragmentation after Berlin announces a 200,000 million plan

LUXEMBOURG, 3 Oct. (EUROPE PRESS) -

Several ministers of Economy and Finance of the euro zone have warned this Monday of the risk of "fragmentation" of the single market upon arrival at a meeting of the Eurogroup, days after Germany announced a plan of 200,000 million euros in aid to reduce the electricity bill for businesses and homes.

Upon entering the Eurogroup in Luxembourg, the Commissioner for the Economy, Paolo Gentiloni, advocated avoiding "the fragmentation of the single market" and thinking of tools that can contribute to solidarity.

"Solidarity is not just on German shoulders. I think this is something we have to discuss at a European level," stressed the Commissioner for the Economy, who has given the pandemic as an example of "how solidarity" can serve "to react to crises and secure financial markets.

In a similar vein, the economic vice-president of the European Commission, Valdis Dombrovskis, urged us to be "cautious" with the mix of economic policies that are implemented, and stressed that these must be targeted and temporary, to "ensure that the fiscal measures we are taking will bring us back to 2% inflation", in line with the guidelines of the European Central Bank.

For his part, the German Minister of Finance, Christian Lindner, has defended upon his entrance to the meeting of Ministers of Economy of the Nineteen that the German Government has launched a "protective shield" for households and the economy of up to 200,000 million of euros.

"We have taken this measure for the next two years," the German stressed, emphasizing that the measure is not only for 2023, but will extend to 2024, something that, considering the size of the German economy, has been estimated " provided".

"It is not our intention to boost demand in the economy. It is not our intention to completely remove the burden on households in the economy. It is a measure to protect the key structures of our economy," the German minister defended.

The president of the Eurogroup, Paschal Donohoe, has highlighted the importance of coordinating national economic policies in order to improve the resilience of the euro zone.

"We have the RepowerEU initiative and we have the current implementation of the Recovery Fund, which are very powerful tools to drive economic convergence" and achieve practical effects to achieve the European commitment to solidarity.

Asked about the German emergency plan, the First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, has defended a united response at European level.

"At this time when we are also facing a global challenge and an international challenge, we have to act together, we strongly support the EU reinforcing its tools to respond to Putin's blackmail," the first vice president told the press. entry to the Eurogroup in Luxembourg.

The Belgian Finance Minister, Vincent Van Peteghem, has defended that the "European project is based on solidarity, on working together" and on "coordination" for which he has valued that the finance ministers of the euro zone meet to discuss these issues.

"It is important that we show unity, that we act as a block. That today, in these times of crisis, we believe in predictability even though we are in uncertain times," added the Belgian minister.

In this sense, Calviño has highlighted that "as happened with the pandemic, we are stronger when we act together, with important decisions, with determination and also with solidarity. This was the recipe we used to respond to the pandemic".

More harshness has been shown by the French Finance Minister, Bruno Le Maire, who has warned of the need to agree on a European response to the rise in energy prices and has urged that aid be properly adjusted to avoid a "fragmentation" of the single market that endanger fair competition within the European Union.

"It is essential that financial aid be focused", Le Maire stressed, adding that it is something "indispensable if we want conditions of fair competition between Member States".