While the 2008/2009 global economic crisis had many negative consequences, one positive effect was that it massively accelerated international cooperation on tax matters. This is the kind of impetus that we also need for tackling the Covid-19 pandemic. The focus is not on generating more revenues, but rather primarily on achieving greater equity in the way that revenues are generated. This requires more public discussion of fair taxation. After all, the way that resources are mobilised and deployed to tackle the crisis will also have an impact on state legitimacy and social cohesion.
The management of the coronavirus pandemic has been considerably impaired by a dearth of essential medical and pharmaceutical products. Disruptions in supply chains for healthcare goods have caused shortages and tight inventories. The reliance of many countries, particularly in Europe and Africa, on products imported from a few international suppliers is largely the result of the process of globalisation in the past decades. In conjunction with the lack of preparedness of health and civil protection systems, interdependencies in healthcare sectors, notably between Europe and Asia, made them vulnerable to a crisis affecting both exporters and importers.
The EU is putting forward the idea of a COVID-19 marker on aid data to track the unprecedented mobilisation of resources to tackle the crisis globally. Rather than such a marker, the EU should consider supporting more sustainable and technologically-savvy approaches to ensure much needed transparency and accountability. The EU could back a number of other initiatives that are likely to better meet information needs, strengthening data ecosystems in developing countries and improving global reporting during and beyond the ongoing crisis.
Covid-19 brought a brief respite in the growth of carbon emissions. The challenge now is to achieve a long-term decrease. We must seize the moment to turn the coronavirus crisis into the green opportunity the world needs most.
Energy renovations are a priority for post-crisis recovery plans, both in France, in the European Union and in the world.1 This urgency can be explained both by its rapidly mobilizable economic potential, its key role for climate policies, and by the importance of the fight against energy poverty in a context of increasing vulnerabilities. While proposals for France’s recovery plans abound,2 the challenge now is to identify the most effective levers for combining economic recovery with scaling-up of highly performant deep retrofits, which is a prerequisite for moving onto a convergent path with France’s national low-carbon strategy.
While the EU weeps over the slow progress in the preparation of the EU-Africa Summit in October – partly slowed down by the COVID-19 pandemic – China and African leaders held an ‘Extraordinary China-Africa Summit on Solidarity Against COVID-19’ last week. Thirteen African leaders took part in this virtual event, including South Africa’s President and African Union Chairperson, Cyril Ramaphosa, and Moussa Faki Mahamat, Chair of the African Union Commission.
The impacts that Covid-19 has brought about in our daily lives are very apparent. Less apparent is the immediate implications of the pandemic for global poverty. In terms on the effects on livelihoods, however, impacts are going to hit vulnerable communities the hardest. Any net loss for them represents a larger share of their already limited income and the effects will be felt well beyond shocks to their income.
There is not a ‘one-size-fits-all’ solution to respond and recover from the current global health emergency and economic fallout resulting from COVID-19. A combination of pragmatic solutions is needed to face the debt issue and give countries room to make the policy choices and investments that will also lay foundations to recover, putting people and nature at the heart of economic growth and development.
Beginning in July, Germany will hold the European Council Presidency until the end of the year, a term that will be characterised by the effects of the corona pandemic and the efforts to manage it. The Council Presidency should be used to mould the processes of the EU recovery plan and the MFF in a way that delivers decisive impulses for an orientation towards climate and sustainability goals. A further summit of the EU heads of state and government will take place in July, tasked with reaching agreement on the EU recovery plan.
The German post-crisis recovery plan was unveiled by the coalition government on the night of June 3-4. With a total volume of €130 billion, and therefore much higher than initially expected, it provides for nearly €35 billion for climate-friendly investments, particularly in the transport sector and in the development of a hydrogen industry, partly based on the proposals made by Agora Energiewende.1 Although the initial assessment is rather positive, efforts are still required, particularly in the buildings sector, for the acceptability of renewable energies or the reduction of electricity taxation. The recovery plan as presented sends a strong signal regarding the direction the German economic and climate policy will take, as the country will take over the rotating Presidency of the Council of the European Union as of July.