Dublin-Eurozone Finance Minister Paschal Donohoe, head of the Eurogroup, is confident that the region’s recovery will be sustainable until next year, even if the Omicron coronavirus variant requires new public health measures. He told the Reuters Next Conference.
Irish Treasury Minister Donoho said his confidence reflects the economy’s increasing ability to limit the damage caused by the restrictions set to slow the spread of the virus. ..
He also said the European Union’s huge COVID-19 recovery fund will make a “very big injection” in the block next year to further prevent the risks currently occurring.
“It’s a very early stage in terms of the health effects of this new variant on all of us,” Donoho said in an interview Wednesday.
“I hope we can avoid these widespread health measures again. I am as confident that consumption and investment can be made possible with them.”
But to get rid of the threat that pandemics pose to the global economy, more needs to be done to help immunize poor countries, Donoho said.
“There is a fundamental urgent need to deal with the impact of pandemics on the interdependent world: not all of us are safe until we are all safe.” He said.
“South African scientists have created a great public good in detecting what is happening in their country (using Omicron), how important it is to meet their obligations to other parts of the world. I’m emphasizing that there is.
“That’s why the European Union is the largest exporter of vaccines.”
Due to Ireland’s continued ability to survive one of Europe’s toughest blockades, the country’s fiscal oversight agency predicted Wednesday that its 2021 budget deficit would be lower than the government’s forecast just six weeks ago.
But Mr. Donoho said whether the new variant (first case confirmed in Ireland on Wednesday) will affect economic activity and what level of financial support will be needed from December to early next year. I warned that I needed to confirm.
He said governments across the EU would be responsive and agile if more financial support was needed.
“For the past 18 months, we’ve demonstrated our ability to take effective, work-saving measures … we’ll do it again,” says Donoho.