The Prime Minister considered this Wednesday essential for the European Union to reuse around 200 billion euros of already issued but unissued common debt, with Portugal responsible for a share of 12 billion euros.
This proposal to support the industrial sector more dependent on energy costs was presented by António Costa at the opening of the preparatory debate for the next European Council, on Thursday and Friday in Brussels.
“I hope the European Union understands that crises are recurring crises and that therefore we must have a permanent crisis response mechanism and not create a transition mechanism for every crisis,” the leader of the Portuguese executive said in his first intervention. debate.
Speaking before the delegates, the Prime Minister said he did not ignore the political difficulties inherent in reaching a European consensus on a new debt issuance by Brussels, as well as the constitutional difficulties faced by some member states in the joint issuance of debt. .
“But there is a need for pragmatic and urgent responses to the crisis we are going through. And there is a possible response that does not require new issuance of debt, but simply the use of debt already issued by the European Union and not yet by Member States has been used States,” noted António Costa.
According to António Costa, “more than 200 billion euros mobilized under the Next Generation program are not used to be transferred to Member States in the form of loans”.
“This EUR 200 billion can be reused to directly support companies, and in particular those that are intensive energy consumers, such as ceramics, steel and chemicals – industries that are at risk of shutting down across Europe and that we cannot risk It is possible to pragmatically mobilize these resources that are already available and that states can resort to, simply by increasing eligibility,” he insisted.
In the case of Portugal, notably António Costa, this eligibility authorization would be granted at the level of the Recovery and Resilience Plan (PRR).
“In other words, allow under the PRR to mobilize about 12 billion euros in loans that we do not use and that we could mobilize to support, if necessary, our companies most affected by energy costs “, justified.
One of the central questions of the next European Council, from António Costa’s perspective, will be the model for responding to the current inflationary crisis as a direct consequence of the rise in energy prices.
According to António Costa, as part of the response to the COVID-19 pandemic crisis, the SURE program will “prove well”.
“And for that reason it should become a permanent mechanism,” even if what it finances shouldn’t be all the layoffs, but something we should call ‘lay-on’, which is paying for companies to keep working, despite the brutal increase in the energy costs they currently bear”.
In his speech, António Costa expressed his full support for the European Commission’s proposal to create a joint gas purchasing platform, with a view to increasing negotiating margins to obtain more competitive prices and avoid supply disruptions.
“But no measure will be effective without a real European market. There is no European market until there is a real interconnection between all member states,” the Portuguese executive leader insisted.
Turning to the agenda of the next meeting of heads of government and heads of state of the European Union, the leader of the Portuguese executive also expressed his support for the strategy of decoupling the price of gas from that of electricity.
“The Iberian mechanism, as a transient mechanism, has ensured that, even in a year of drought, the price has been on average about 18% lower than what it would be if it didn’t work. On the other hand, and for the volatility of prices, the European Commission proposes to change the international gas price reference, which is starting to have a dynamic band of variation, by setting a maximum and a minimum,” he said.
Also according to the prime minister, “it is necessary to definitively review the mechanism for determining the price of electricity and to put an end to the marginalist mechanism, which today no longer has any justification”.
Source: DN
