In the Euro-Zone and EU economy in general, two counterbalanced powerful forces are created after the end of the pandemic. On the one hand we have the net potential part of the economy that will include strong capital-intensive companies that will be driven without obstacles to their “green” transformation causing their explosive growth and gaining a comparative advantage funded by the EU Recovery and Resilience Facility Fund.
by Thanos S. Chonthrogiannis
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The EU Recovery and Resilience Facility Fund is an instrument for transferring resources, human resources, and capital from obsolete sectors of the economy to modern sectors that will participate in Europe’s green digital development.
On the other hand, the second counterbalanced and entirely powerful force that is developing and fully counterbalanced in relation to the former is the part of the economy that will collapse due to the tsunami of debts that will hit it including the overwhelming proportion of micro-enterprises.
Bankruptcies in all euro area/EU member countries are already being covered up and they are getting a life extension because the European taxpayer through the government of the member country who lives and works maintains with the future taxes that will be imposed on him to cover the budget deficits that currently finance the fixed costs (salaries, seat maintenance costs, etc.) of companies that due to measures to deal with covid-19 are closed.
A large proportion of these undertakings will not return to normal operation, since their obligations are being transferred, but accumulated soon.
The problem that is emerging is that there is no plan from Brussels so that the dynamic part of the economy that is being formed can attract the most sustainable part of the second dynamic that is developing in the economy and since it will be helped to modernise and rebuild to be more attractive.
In this case it could be part of the future growth you expect. This project should first and foremost show an extraordinarily strong net of protection for human resources that will lose their jobs, so that they are trained to find other work while supporting their families so that education and the basics are not lost for them and their families.
Since this plan does not exist, it is expected that after the wave of bankruptcies zombie companies will appear that will be financed by prolonging their lives but also former workers who, due to the deprivation of basic social goods, will be zombie citizens who will be the key to any new social unrest and tension.
