Spain, Ireland, and Luxembourg are battling over new Euro Zone chief jobs as the Covid-19 epidemic rages.
The finance ministers of Spain, Luxembourg, and Ireland are vying to become the next Euro Zone leader at a time when the country is experiencing one of the most significant economic problems in existence.
The Eurogroup — a conference that draws together 19 finance ministers from countries sharing the euro — is looking for a new leader as Mario Centeno, the Portuguese socialist finance minister, is set to finish his tenure on 13 July after two and a half years.
The three candidates are Nadia Calvino from Spain, Paschal Donohoe from the Republic of Ireland and Pierre Gramegna from Luxembourg. The first to receive 10 or even more votes from 19 ministers on July 9 will become the next President.
In April, the Eurogroup accepted proposals to include €540 billion ($605 billion) in fiscal measures to reduce the economic effects of the pandemic. However, further talks are pending for more economic initiatives. After the European Commission, the EU executive arm recommended growing EUR 750 billion in public markets and turning the cash over to Member States and industries that have been hurt the most by the pandemic.
This initiative has given rise to conflicts of opinion between the 19 euro nations, and within the broader European Union. Some nations are worried that the program is overly ambitious in administering EUR 500 billion in grants and requiring concrete promises that each government must work on to recover public finances.
Many countries, mindful of public opinion, do not want economic relief in the form of bailouts, as was the case during the 2011 sovereign debt crisis with the so-called Troika.
These differences may play a significant role when the ministers of the euro area vote on the new president of the Eurogroup next month.
The new Leader will have to work with these branches, while still handling the recovery process. One of the big unanswered questions is how the Member States are going to repay the current debt.
In addition, the next chief of the Eurogroup will also face global threats such as a downturn in foreign trade and transitional agreements with the United Kingdom. As well as the dispute with the United States over digital taxation.
Source: CNBC
