The Governor of Bank of Spain, Pablo Hernández de Cos, has asked "mutualize European debt" by the crisis in an article published in El País and later sent to the rest of the media.
"The health crisis caused by the coronavirus has become a serious threat to people's health. Its economic impact is already visible and the available indicators point towards a severe contraction of economic activity on a global scale"Hernández de Cos has pointed out.
"The experience of some countries, where the virus first broke out, suggests that if appropriate containment measures are taken, the health crisis will be transitory. Another issue is that the negative impact of this crisis on the economy is also limited in time or leaves a more lasting mark. This will depend on the response given by economic policy in all its areas.. A fast, forceful and coordinated action of the different economic authorities – national and European; fiscal, monetary and supervisory companies- will make the crisis more likely to have transitory effects, and not end up leaving a long trail of job losses and company closings along the way, "he added.
It has also valued the Spanish Government response as "necessary and adequate" and has considered that the measures of ECB and the Single Supervisory Mechanism (SSM) "They send the message loud and clear that they will do everything in their power to ensure comfortable financing conditions for all economic sectors."
However, he added that "the answer to this crisis must go further. The pandemic and its economic impact are affecting all countries in the euro area and, by extension, the European Union. The common challenge that lies ahead is of such magnitude that meeting it requires decisive and ambitious action by community authorities and institutions through existing instruments, both financial and budgetary, as well as possible new tools, including priority should be given to those that strengthen the ability to share -mutualize- -the budgetary risk of the Member States. It is at this difficult time that we must value the solidarity principle on which the European project was founded, which will also result in greater efficiency of the measures. Greater ambition and coordination of the response at European level is not an option, it is an urgent need"
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