Berlin Chancellor Angela Merkel has called for further economic relief for the next phase of the corona pandemic. “It has been pointed out that the recovery phase must also be accompanied by economic stimulus programs,” said Merkel on Wednesday after a switch with the presidents of multilateral organizations such as the WTO, the World Bank, the IMF, the OECD and the International Labor Organization ILO. The federal government is also planning this.
It is important that “it is not the case that higher taxes help to restrict, restrict or even bring the upswing back to a standstill,” added Merkel. That was an important concern in the discussion.
“So we also have to combine the recovery phase with relief for the economy and thus for job creation.” The SPD calls for the taxation of higher earners to be taxed more heavily to finance the multi-billion dollar rescue programs.
At the same time, Merkel rejected concerns that the rescue attempts for companies in Europe and Germany could be less effective than in the USA or China. “We have very courageously planned our rescue operations and are carrying them out,” she said.
Worldwide, nine billion dollars have already been put into rescue measures, in the EU this is already two billion euros. They also want to give their own companies a chance. Siemens boss Joe Kaeser had previously said in a Reuters interview that the USA and China would probably emerge stronger from the corona crisis.
Export restrictions on food
At the same time, Merkel warned of economic foreclosure in the crisis. “The answer to the pandemic can certainly not be to renationalize all international supply chains now,” said the CDU politician. “Then everyone would pay a very high price.”
The head of the World Trade Organization (WTO), Roberto Azevêdo, pointed out in the video conference the large number of current unilateral measures, Merkel reported. Export restrictions on food are particularly worrying. Unemployment turns into poverty and quickly becomes hungry. The supply of mankind with food is crucial.
The Director General of the International Labor Organization (ILO), Guy Ryder, has underlined the importance of job creation in developing countries, Merkel said. If there was less consumption in developed countries, it would have a dramatic impact there.
Poverty alleviation will therefore become important in the coming years – especially since there is a lack of financial opportunities for large stimulus programs in economically weaker countries. “For Germany this means: not cut development aid, but continue to invest.”
Merkel underlined the importance of international cooperation between states. “Multilateralism was faced with a major challenge even before the pandemic, and this challenge has not diminished.” The corona pandemic was only over when there was a vaccine against the virus or good treatment options. These should therefore be understood as “common global goods” and should therefore be made available to everyone.
More: The latest developments in the news blog.