Presentation by Prof. Dr. Dirk Wentzel on COVID economy in Germany and Europe
The regular seminar was held on January 26, 2021 (as a zoom-conference) with the key speaker Dirk Wentzel, professor Jean Monnet chair in European Economic Integration, head of Economics Department, University of Pforzheim (Baden-Württemberg, Germany). The topic of prof. Wentzel presentation was “The economic, fiscal and financial implications of a coronavirus pandemic for Germany and the European Union”.
The report descraibed the current situation in the German economy and finance in connection with the damage caused by the "natural disaster of the coronavirus epidemic" as defined by the speaker. The actions of the federal authorities in Germany were analyzed in detail, which, being correct in terms of content, were not long enough in timeing, which led to an increase in the incidence rate in November 2020 and a very tough second lockdown, which continues and intensifies to this day.
Germany's federal budget deficit amounted to an unprecedented 7.5% of GDP, which is almost 3 times higher than the Maastricht monetary criteria. The European Union has decided to increase the contribution of the Union countries to the single European budget from 1.2% to 2% of GDP. For the first time in history, the EU will issue its own Eurobonds and form a new EU debt.
Upon completion of the report by prof. Wentzel, a lively discussion was held, with participation of experts from Poland, Germany, Slovakia and France.