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May 20, 2020

Coronavirus Update: Finance Minister urges EU to adopt quick, proportionate and fair measures

Finance Minister Mihály Varga has urged the European Union to adopt quick, proportionate and fair measures as part of its management of the bloc’s coronavirus crisis.

 

Finance Minister Mihály Varga has urged the European Union to adopt quick, proportionate and fair measures as part of its management of the bloc’s coronavirus crisis. During a video conference with his EU counterparts, Minister Varga said the EU’s measures must place heavy emphasis on protecting jobs and supporting businesses and families.

According to MTI, the ministers discussed, among other matters, unresolved issues in connection with the European Investment Bank’s (EIB) pan-European guarantee fund set up in response to the pandemic. The fund aims to use leverage to provide 200 billion euros in funding to European small and medium-sized businesses.

Minister Varga underlined the importance of providing loans to businesses but pointed out the risk of having the fund’s guarantees provided from national budgets, citing a “geographical imbalance” when it came to the use of centrally-regulated funds.

Member states in recent months have introduced important measures using their own resources to mitigate the economic effects of the epidemic, he said, adding that keeping state counter-guarantees at a national level appeared to be a more effective way of stimulating lending.

A call center set up for advice on the coronavirus can be reached on +36-80-277-455 and +36-80-277-456 or by email koronavirus@bm.gov.hu