MBB calls for more ambitious budget to avoid deep crisis in eurozone

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On Europe Day tomorrow the 9th of May, the Malta Business Bureau believes that through responsibility and solidarity of all its members, the EU is best posed to provide the right stimulus to bounce back from a deep economic crisis to growth due to the Covid-19 pandemic, as it deems the current budget not ambitious enough.

In a statement, the MBB explained that in reaction to this crisis, the EU institutions have used all the legal frameworks and funding instruments within their competence to stabilize the markets and inject liquidity into the economy. The level of funding is however not sufficiently ambitious and may not be enough to save the economies of some member states, which risks triggering a deeper crisis in the eurozone, according to the Bureau.

The MBB’s statement says, “We cannot allow this crisis to create permanent damage to our economic ecosystem, which is why the MBB welcomes the European leaders’ call for an EU Recovery Fund, a framework which is being drafted by the European Commission; as well as the separate process of revising the EU Budget framework for 2021-2027 to rebalance the EU priorities to reflect the current crisis. Both are expected to be published later in May. The MBB also calls for a subsequent swift agreement by legislators to ensure that the much-needed funding is deployed immediately and without unnecessary delays.”

On the revised EU Budget for the next 7 years, MBB President Simon De Cesare stated that what the companies require most currently is the direct injection of liquidity to ensure their survival. According to De Cesare, the Maltese Government must push for a dedicated EU budget line for tourism which prioritises financial grants at least in the first years of exiting the crisis.

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