The EUR 37 Billion Fund is too Small and arrived too Late for European Union to fight the Novel Coronavirus
Posted on 27 Mar 2020; 05:00 PM IST. Last Updated 27 Mar 2020; 05:00 PM IST.Summary: The European Union Commission President announced EUR 37 Billion fund to mitigate the novel coronavirus (covid-19) crisis. This fund is too small and arrived too late, to provide effective ammunition, in the fight against the virus. This article explains the possible steps EU could adopt, to fight the novel coronavirus.
The Novel Coronavirus is a monster of a disease, and requires an extraordinary response, to put it down. The EUR 37 billion fund announced by the EU Commission President, is too small and arrived too late, for European Union to put on a strong fight against the disease. The details of the speech given by the EU Commission president are available at this link.
So, what can EU do in this difficult moment?
European Union could impose a 10% cess on oil, and non-essential goods. In addition, all goods imported from China, could be subjected to an additional 75% import tax, called the "Novel Coronavirus tax". The combined tax proceeds could be split up in such a way, that 20% of the collections go to the central reserve, and 80% goes to the member states.
The above scheme could reap approximately 500 billion EUR, for the European Union, which is the least it needs immediately, to carry out an effective fight against the disease, and survive. The scheme could provide a continuous rolling income, which is absolutely necessary, to fight the disease, and to re-stabilize the economies, over a longer term.
A similar scheme could work for USA, and many other countries, outside the European Union.
It is imperative that all countries should accrue funds immediately, by whatever means at their disposal, and fight the virus with full force. It may be noted that no country has the luxury, to conduct endless debates, on how to fight the virus.
Time is the critical factor, in winning against this virus, and only those who start the fight early, would "Win and Survive".