The President of Club de Madrid, Danilo Türk, sent a letter to EU leaders in support of a post-COVID-19 world based on “strengthened multilateral cooperation”. In the letter, Türk also backs the pledging conference hosted by the EU, given the important need for additional financial resources to fight COVID-19.
The letter, which is addressed to the President of the European Commission, Ursula Von der Leyen and the President of the European Council, Charles Michel, backs the solidarity expressed by the EU with vulnerable economies during the last G7 meeting.
On the financial needs of the post-Covid19 world, Türk celebrates on behalf of Club de Madrid Members that “debt standstill” is part of the equation. In addition, the former President of Slovenia stresses that debt restructuring will be necessary for vulnerable countries. “Social sustainability and inclusion are now vital in preventing social disintegration and conflict in the most vulnerable countries, many of which are close to Europe”, Türk continues.
With this goal in mind, Danilo Türk also encourages EU leaders to support the IMF in issuing Special Drawing Rights (SDRs), a financial instrument based on foreign currency reserves that would provide extra liquidity to states. The G20 did not achieve a consensus on this rarely-used measure in its last meeting. The IMF has only once issued SDRs, in the wake of the Great Recession.
In relation to the future of the European Union, Danilo Türk states that Club de Madrid is ready to assist “in pursuit of a truly open, inclusive, transparent and structured instrument that will shape and strengthen future EU action, regionally and globally”, now more than ever in the face of the pandemic.
The letter also notes that the WHO is in need of financial support, making it more difficult for the international organization to assist states with vulnerable health systems and to coordinate global research of a COVID-19 vaccine. Türk looks forward to the online pledging event that the EU will host on 4 May with the aim of raising funds to research an effective vaccine.