A 750 billion euro recovery plan has been unveiled by the EU to try and help the continent back onto its feet due to the pandemic. However, as soon as this aid package was unveiled, concerns were raised on whether it would be enough to cushion the economic fallout as the EU restart its economy.
An economist, Rémi Bourgeot, spoke to France 24 about the recovery plan and if it would be enough to help the economies across the EU.
He said: “It’s a very substantial amount and would be very impressive to address a normal recession.
“But facing such a devastating depression with no recovery in sight, this is not that substantial.
“Of course, there are clear political limits to what can be done.
“The fact that France and Germany were already able to agree on something of that scale is very significant.”
Mr Bourgeot continued: “But we’re really witnessing an economic crisis of a different magnitude.
“Although this is really a strong political signal and showing some kind of cohesion, it’s really not going to change the course of the depression we’re facing.
“It’s really important in terms of the political signal and it’s going to have an economic impact if it’s used in targeted measures.
“What’s really striking here is that it’s going to benefit those countries that have been hit hardest much more than other countries.”
“The question of changing the mandate of the European Union does not arise at all,” Mr Barnier told German broadcaster Deutschlandfunk.
“I remind you that the UK will leave the internal market and the customs union after leaving the European Union. We continue to set the conditions for access to our own market.
The economist added: “Also looking at this year’s recession, we’re talking along the lines of eight percent contraction.
“Even the ECB acknowledges that it could get much worse than 10 or 12 percent, or even more than that.
“So this plan is a lot of money indeed, but facing such a devastating crisis, it’s not going to be enough.
“But it’s also important because those countries which are hardest hit are the same which were hardest hit by the Europe crisis and have a bad fiscal position.
“They don’t feel allowed in this crisis to spend as much on stimulus as those countries which are less hit by the crisis.”