The new $1.9 trillion support package adopted in the United States has become the most significant economic stimulus program in world history. After the package was approved by the House of Representatives, President Biden signed it on Thursday. The aid package, funded by the state debt, is intended to help the poor, families, communities вЂ” and schools in the first place. The European media mostly approve of the initiative of the US president вЂ” and express the hope that the measures taken will have a positive effect on this side of the Atlantic.
Help package for the whole world
Biden's initiative will benefit not only the US economy, вЂ” says the Financial Times:
вЂњThe rise of the American economy means that economic demand in the rest of the world will also 'beat over the edge'. First of all, the closest neighbors and the most important trading partners of the United States вЂ” Mexico and Canada, as well as the export-oriented economies of East Asia and Europe-will benefit from this. ... If the OECD is right about the Biden package вЂ” and there is every reason to say it is вЂ” then a strong US economy will be the engine of economic recovery around the world. But at the same time, it would be highly desirable that the world could rely not on a single source of healthy momentum-other rich countries should also catch up.вЂќ
Recovery Fund: Use immediately!
La Repubblica hopes Biden's aid package will set an example for Europe:
вЂњThe decision signed yesterday by Joe Biden to allocate $1.9 trillion to overcome the emergency situation caused by the pandemic should be considered not only in the context of the United States itself but also as part of the global response to the challenges of the economic crisis. ... There is no doubt that in absolute numbers, America-especially in this year, 2021 вЂ” will move forward much faster than the European Union, its members, and most of the G-7 countries. ... What is the moral of this story? The opportunity to accelerate the creation of the European fiscal union is now available, and not in the distant 2022. It is necessary to move the recovery fund to the structural paradigm as soon as possible.вЂќ
Debts need to be paid back
Such a large-scale aid package is fraught with considerable risks, вЂњ warns De Tijd:
вЂњWhen you buy growth, as Biden is doing now, you have to pay for it. And above all, when growth is accompanied by an increase in interest rates. In this case, debt financing becomes a problem again вЂ” the one that central banks have been shelving for so long. Countries with sky-high public debt will face the consequences much sooner than they expect. That is why Europe should develop its own stimulus plan as soon as possible. A smooth-running economy is a much better way to slow down rising interest rates and finance debt than running a printing press by one central bank or another.вЂќ
He knows the business!
As the publication Politiken notes, the package of measures approved by the Senate proves that Biden was underestimated:
вЂњJoe Biden can look back on the longest political career of any US president in recent history. If his predecessors were new to Washington when they took office or had only limited experience, Biden can draw on half a century of experience. ... More than anyone else, he knows how the Senate works вЂ” and now he has proven that he is able to pass the most serious projects through it, even in conditions when the Democrats have only a minimal majority there. ... This week, Biden demonstrated how decades of experience can be used to build a better future.вЂќ