Eurogroup's recovery plan progresses well: Eurogroup president

President of the Eurogroup Mario Centeno said on Friday that the 540 billion-euro economic response package to coronavirus is being made possible "in record time".

"The last Eurogroup was just one week ago. We have been busy making good on our promise to add a new line of defence of up to 540 billion euros. I can report good progress today. The ground-breaking political decisions taken in the Eurogroup a month ago are being translated into legal reality in record time," Centeno said in a statement following the Eurogroup videoconference.

Centeno, who is also Portugal's Minister of Finance, said all countries in the eurozone are confirmed as "eligible" to receive financial support.

"Member States are doing everything possible to control this pandemic, the ESM (European Stability Mechanism) Board of Governors is ready to support them," he declared.

"The costs of direct and indirect health care, costs of cure and prevention, can be covered by the mechanism. Therefore, the first safety net is already in place," he said.

Centeno also pointed out that the SURE program (Support to mitigate Unemployment Risks in an Emergency), aimed at European workers, will become law in a few days to protect jobs and income during the pandemic.

"The SURE program means that these efforts are supported by European solidarity, in the form of cheap loans," he said.

Regarding companies, the president of the Eurogroup said that the so-called EIB (the European Investment Bank) Pan-European Guarantee is also moving towards a definition of the main parameters.

"Member States have taken unprecedented steps to keep companies afloat during this crisis. It is essential to have this common safety net in order to keep companies viable in business and prevent fragmentation of the single market," he stressed.

Centeno pledged that Europe will "need something more" after the pandemic to "accelerate the economic recovery and ensure that we grow together".

He explained that the recovery fund must be temporary, targeted and proportional to the extraordinary costs of this crisis.

"The recovery is an opportunity to accelerate the modernization of our economies, in particular the transition to a green and digital economy," he said.

According to the Eurogroup president, policies will be needed to restart the single market and preserve the integrity of supply chains.

"We will continue to monitor the economic situation closely and prepare the ground for a robust recovery," he added.

(CGTN)