Overcoming COVID-19: Laying the foundation for a more resilient EU

Last week, the European Commission presented an ambitious recovery plan, including a new instrument ‘Next Generation EU’ to boost the EU’s spending capacity. The Commission’s proposal aims to tackle the ripple effects of the COVID-19 crisis on the European economy and puts forward an unparalleled financial commitment, along with strong policy measures to strengthen the Single Market as well as to enable the green and digital transformations. It has the potential to be one of the engines that will restart Europe’s economy, creating new jobs and prosperity to benefit all citizens. However, there is still a tough balancing act in front of us, which requires management of the short-term economic impact of the health emergency, while laying the foundations for what is coming next. 

 

AmCham EU has published a statement on the proposal last week and will continue to support policymakers throughout the entire recovery phase, therefore we have put forward some short-term recommendations to ensure that Europe does not stall on its road to recovery.

News
1 Jun 2020
Overcoming COVID-19: Laying the foundation for a more resilient EU

Last week, the European Commission presented an ambitious recovery plan, including a new instrument ‘Next Generation EU’ to boost the EU’s spending capacity. The Commission’s proposal aims to tackle the ripple effects of the COVID-19 crisis on the European economy and puts forward an unparalleled financial commitment, along with strong policy measures to strengthen the Single Market as well as to enable the green and digital transformations. It has the potential to be one of the engines that will restart Europe’s economy, creating new jobs and prosperity to benefit all citizens. However, there is still a tough balancing act in front of us, which requires management of the short-term economic impact of the health emergency, while laying the foundations for what is coming next. 

 

AmCham EU has published a statement on the proposal last week and will continue to support policymakers throughout the entire recovery phase, therefore we have put forward some short-term recommendations to ensure that Europe does not stall on its road to recovery.

The crisis is far from over. As it evolves, new challenges emerge. Member States must tackle the effects of containment on households and businesses and develop exit strategies to allow for economic activity to start again after weeks of ‘lockdowns’, while continuing to protect the health and security of their citizens. The road to economic recovery will be long. The difficult task ahead for leaders in Europe, and around the world, is to continue to address all these issues simultaneously.

 

The EU economy’s ability to bounce back will undeniably depend on the success of crisis response measures. Short-term measures will need to be complemented by long-term policies and investments, the combination of which should support the new European economy that is both green and digital.

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The group met with Jakob Wegener Friis, Chief Economic Advisor to the President of the European Council; Didrik de Schaetzen, Secretary General, ALDE Party, European Parliament; Klaus Welle, Special Advisor to the Commissioner for Defense and Space and Chairman, Academic Council, Wilfried Martens Centre for European Studies and Fabian Zuleeg, Chief Executive and Chief Economist, European Policy Centre. 

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The European Parliament’s International Trade (INTA) Committee vote to approve the Commission’s tariff reduction proposals keeps the implementation of the July 2025 EU-US Framework Agreement on track. This vote was a critical signal that the EU intends to stick to its side of the deal, just as we expect the US to uphold theirs.

AmCham EU now calls for the European Parliament to adopt these proposals in a plenary vote at the earliest possible opportunity. The transatlantic commercial relationship is worth $9.8 trillion, with $6.4 billion in goods and services exchanged between Europe and the US every day. Predictability on the rules and costs of trading across the Atlantic is essential for planning, investment and jobs.

AmCham EU is opposed to broad-based tariffs. We understand MEPs’ caution in a volatile transatlantic political environment and have called for the US administration to provide greater clarity on its tariff policy. However, given political priorities on both sides, we still see the EU-US Framework Agreement as the most realistic path to securing a more constructive EU-US trade and investment climate that helps businesses plan ahead.

Beyond tariffs, the Framework Agreement offers a platform for deeper EU-US cooperation on shared priorities, including critical minerals supply chains, addressing nonmarket practices and strengthening cybersecurity. Today’s vote paves the way for the next phase of that agenda.

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On Tuesday, 17 March, AmCham EU hosted its Transatlantic Dinner, bringing together AmCham EU senior members, selected partners and representatives from the European institutions  for an exchange with Andrew Puzder, US Ambassador to the EU and Vsevolod Chentsov, Ukrainian Ambassador to the EU. 

Malte Lohan, CEO, AmCham EU, opened the evening by reaffirming the organisation’s commitment to building a strong Europe and strengthening transatlantic ties. Liam Benham (Boeing), Chair, AmCham EU, highlighted the challenging environment for businesses amid economic and political uncertainty, while underscoring the resilience of the transatlantic economy, now valued at $9.8 trillion. He emphasised the importance of predictability, a competitive Europe and an open investment environment to support growth. 

The discussion also highlighted the role of business in supporting Ukraine’s reconstruction and recovery, as well as the importance of continued cooperation between the EU and US to strengthen economic ties and address shared challenges. 

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