After the lockdown devastated the industries around the world the economy of the European Union started slowly taking off. The way to recovery will not be easy and it will take a lot of time. The European Union provided a recovery package that costs 1.82 trillion EUR. Eurofound conducted a survey “Living, working and COVID-19 that studied the impact of the pandemic. 28 % of the participants of the study said that they had lost their jobs or had been laid off. 50 % of the participants have less working hours than before. 50% of the families struggle to provide basic necessities. 40% of European Union’s population found themselves in a harder financial situation than before they were in before the pandemic. When it comes to feeling lonely, more young people feel lonelier than old people. Among young people unemployment rates are also higher than among other groups. The rates increased six times than the overall unemployment rate. The economy is set to shrink by 8.3% and increase by 5.8% in 2021. The EU worked out an investment plan called Next Generation EU and a different budget for the European Union. EU Council President Charles Michel said that the Union will use an unprecedented 1.8 trillion EUR to completely change the economic and social model taking the digital agenda and most importantly climate into consideration.
Digital economy the rescue?
How important the digital economy is, became clear once again during the pandemic. While the traditional industries including the hospitality, arts, and tourism sectors, along with aviation and some others almost completely closed down during the pandemic, the digital economy thrived. It is probably the only branch of the economy that has more profits now than before the pandemic. It must be emphasized that even some digital industries suffered. The start-ups for example found it harder to maintain their employees. However, the digital world generally had more users during the pandemic. Instagram saw a growth in number of users and the e-commerce world is focusing more on influencers who are successful on Instagram. That’s why you can buy Instagram followers and get started with the influencer world. In fact, people rely on digital technologies not just for work but also for education, entertainment, and socialization. Amazon, Netflix, Facebook, and other leading platforms increased their revenue during the pandemic. Many other digital businesses and the businesses that adopted digital technologies managed to keep working and keep their employees. The industry that is always the first to adopt new technologies and adapt to new ways of doing business is the digital world. For some people who were infected but had no help, online shopping was the only way to get even daily basics such as food and medicine, so e-commerce and delivery services took the responsibilities of delivering the essentials to them. In some ways, digital technologies prevented the world from a bigger crisis. That is why supporting digital industries is crucial for the economy of every country.
Eurozone ministers pledge lasting fiscal support for economy
This month the representatives of 19 European Union member countries met in person for the first time since the COVID-19 pandemic hit Europe. They discussed the economic plan and fiscal response to the financial crisis that the pandemic caused. There were no major additions to the amount of the recovery packages that the countries promised to provide, however, the leaders made it clear that they will try to provide the financial support to their economies for as long as needed. 36% of the European Union’s domestic product will be spent on government support. European Central Bank also provided unprecedented support, which will contribute to the growth of public debt. However, it will help economic growth, and that is the priority right now.