Germany: A Covid-Recovery EU Presidency

On the 1st of July, the biannual exchange of the Presidency of the Council of the European Union occurred with Germany adopting control of what might be one of the most crucial and decisive terms in recent memory. The term will last until the 31st of December and will take the European Union to the end of the Brexit transition period with far more substantial challenges to overcome along the way. Under the banner of its motto, “Together for Europe’s recovery”, they have set out a substantive programme to complement the usual operation of European Parliament.

It is no wonder this presidency might be the best-equipped possible; Germany’s mitigation of the coronavirus crisis has earned it the designation of an Exemplar in Global Health. They have operated within the framework of ‘prevent, detect, contain, and treat’ with admirable skill, establishing protocols which allowed the nation to carry out the most tests per capita and reduce its fatality rates. Despite a substantial reduction in physical distancing measures, the occurrence of coronavirus does not appear to be in a state of upsurge – but what challenges will Germany face in upscaling its management to the 27 countries of the European Union?

A substantial disagreement has already emerged about how the European Union should approach the significant economic recovery which must be facilitated as incidence decreases and the global community edges towards regaining a sense of normalcy. Several EU countries, most notably Italy seek to mobilise the European Central Bank’s creativity for the establishment of “corona-bonds”, Eurobonds which would mutualise risk across the Eurozone countries through providing the opportunity for liquidity for those countries whose economies are in most severe need. Contrasting with the image of unity skilfully portrayed, below the surface there is already dissent among the German federal government and its MEPs.

In April, Chancellor Angela Merkel adopted a staunchly anti-bond stance while dissident MEPs expressed their support for the measures, perhaps indicating that the paternalism needed may not be welcome by those countries who managed outbreaks relatively effectively themselves. The post-Covid political landscape will likely be yet another test of the European Union’s strength and coherence. Germany’s opposition to the corona-bonds scheme may be seen to create tension between some of the six tenets of its presidency, that is, ‘a Europe of security and common values’ and ‘a fair Europe’ depending on the lens through which a state is observing Germany’s every move – whether it is a wealthy country or a poor one, one which has had relatively high or low fatalities per capita.

One thing is certain – to ensure the survival of the European Union and to catalyse the pivotal economic recovery, Germany will have to make good on one of its promises to create ‘a stronger and more innovative Europe’. We know all too well that these are ‘strange and unprecedented times’ and it will be fascinating to observe the approach of governments worldwide.

By Dite Bagdonaite