The paper presents the structure and simulation properties of QUEST, a multi-region New Keynesian DSGE model developed and maintained by the European Commission.
Assessment of Member States with a derogation regarding their fulfilment of the conditions for euro adoption.
The European Investment Bank (EIB) announced its first ever financing for solar energy in Poland.
On 29 May, the Commission, on behalf of the EU, approved the disbursement of a €500 million loan to Ukraine as part of its fourth macro-financial assistance (MFA) programme. With this disbursement, the EU has now provided Ukraine with €3.8 billion in MFA loans since 2014.
The Commission proposed two main changes to the InvestEU Programme on 29 May as partially agreed between co-legislators in April 2019.
On 29 May, the Commission announced plans for a new Solvency Support Instrument (SSI) designed to help kick-start the European economy and overcome the severe socio-economic consequences of the coronavirus pandemic.
“The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment. This is Europe's moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer.”
On 27 May, the European Commission put forward its proposal for a major recovery plan.
On 15 May, the European Parliament approved the Commission proposal for a €3 billion macro-financial assistance (MFA) package to ten enlargement and neighbourhood partners to help them to limit the economic fallout of the coronavirus pandemic.
As part of the European Semester Spring Package, on 20 May the Commission adopted reports under Article 126(3) of the Treaty on the Functioning of the EU for all Member States except Romania, which is already in the corrective arm of the Pact.
"The Coronavirus has hit us like an asteroid and left a crater-shaped hole in the European economy. This Spring semester package has been recast and streamlined to provide guidance to our Member States as they navigate their way through the storm."
The Commission proposed country-specific recommendations (CSRs) on 20 May that provide economic policy guidance to all EU Member States in the context of the coronavirus pandemic, focusing on the most urgent challenges brought about by the pandemic and on relaunching sustainable growth.
In its latest episode, Real Economy focuses on how the EU is redeploying its cohesion policy funds to tackle COVID-19. At €355 billion, the EU's structural and cohesion funds constitute a significant chunk of the bloc's spending. Cohesion policy aims to reduce disparities in regional income across Europe.
On 13 May, the Commission presented a package of guidelines and recommendations to help Member States gradually lift travel restrictions and allow tourism businesses to reopen, after months of lockdown, while respecting necessary health precautions.
The European Commission warmly welcomed the agreement between Member States in the Council on the regulation establishing the European instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE).
The European Investment Bank (EIB) signed a collaboration agreement on 30 April with the Israel Innovation Authority to jointly pursue investment opportunities in the domain of bio-convergence in health.
The Commission adopted a banking package on 28 April to help facilitate bank lending to households and businesses throughout the EU.
The Commission registered €7.4 billion, equivalent to $8 billion, in pledges from donors worldwide during the Coronavirus Global Response pledging event held on 4 May.
“Europe is experiencing an economic shock without precedent since the Great Depression. Both the depth of the recession and the strength of recovery will be uneven, conditioned by the speed at which lockdowns can be lifted, the importance of services like tourism in each economy and by each country's financial resources. Such divergence poses a threat to the single market and the euro area - yet it can be mitigated through decisive, joint European action. We must rise to this challenge.”
The coronavirus pandemic represents a major shock for the global and EU economies, with very severe socio-economic consequences.
