EU Needs Imagination and Creativity to Adapt to Post-Coronavirus Economy
The novel coronavirus pandemic triggered not only a public health crisis but also an economic recession. Under widespread lockdown policies, major economies have halted and unemployment has risen sharply. Europe, plagued by the epidemic, has not been spared. EU leaders agreed to set up a recovery fund via a video conference on April 23, but they have not yet reached agreement on details such as the size and form of this fund.
Jean-Claude Trichet, the former president of the European Central Bank, supports the issuance of new Corona bonds as an important step towards a more federalized Europe, but he also understands why this proposal aroused controversy.
In an exclusive interview with the Caijing reporter, Mr. Trichet said that after passing a series of large-scale rescue programs and economic recovery plans, Europe is not short of money; but to recover from this unprecedented economic crisis, what the EU really needs is imagination and creativity.
Important Lessons to Learn from Pandemic
With the alleviation of the pandemic situation in Beijing, China has achieved a real overall victory in the fight against the novel coronavirus epidemic. It is time for a deep reflection and in-depth analysis of the experiences and lessons learned.
Therefore, while always maintaining a vigilant mind in the face of an uncertain future, it is better to summarize the correct experience in fighting this epidemic and carry it forward, which may be more helpful for us to respond to the future challenges. As we take stock, it is especially necessary to avoid the misreading of the successful experience, otherwise the lessons won’t do us any good in the long-term, and they may result in greater sacrifices. China’s successful fight against the epidemic has fully demonstrated the advantages of the whole-nation system. At the same time, people should not ignore the social dimension of the whole-nation system but should fully recognize the huge role played by social organizations, private volunteers and enterprises.
Different Opinions on How to Finance Small Businesses
According to a reporter from Caijing, since the epidemic broke out, the central government has successively issued a number of loan support policies for small, medium and micro enterprises. Indeed, many enterprises have received loan funds with preferential interest rates, but there are still many small and medium enterprises affected by the epidemic which are struggling just to stay open. Under the loose monetary policy, people began to seriously discuss what hinders small and medium enterprises from obtaining loans from national banks.
On the one hand, the state has introduced more than one trillion yuan of credit support, but it is difficult for small and medium-sized enterprises to benefit in general. On the other hand, the epidemic has pushed up the business risks of enterprises, and banks doubt who will pay. There is a view that the loan interest rate for small and medium-sized enterprises should be more market-oriented, allowing banks to make pricing based on enterprise risks to improve loan availability.
Chinese Pharmaceutical Industry Facing Opportunities in the Post-Epidemic Era
An executive in a pharmaceutical company analyzed in an interview with a Caijing reporter that the production of the pharmaceutical industry affected by the epidemic will gradually recover in the second quarter, and there will even be explosive rebound growth. Eventually it will return to normal conditions in the second half of the year. Looking at the whole industry, as a rigid demand provider for national health, although the Chinese pharmaceutical industry is hit in the short term, the opportunities are greater than the crisis in the medium and long term.
In April, although many innovative biopharmaceutical companies have not fully resumed production, their drug production and logistics capabilities have gradually improved, and the hospital’s clinical trial projects have just begun to recover. In this epidemic, the pharmaceutical industry, capital, and local governments have reached a consensus: the situation facing the Chinese pharmaceutical industry has not change.
