Allianz Pulse 2021: Unity after adversity?

Despite ideological differences and simmering tensions, the EU bloc came together remarkably well to fight the virus and its fallout. You would have thought that the united response to the pandemic would have reinforced the idea of unity in European diversity.

However, despite the Next Generation EU (NGEU) fund, a 750 billion-euro recovery package to support EU member states hit by Covid-19, there is skepticism that the Europeans can be a big, happy family. Just 27 percent of the respondents to the Allianz Pulse survey believe that the unprecedent crisis will strengthen solidarity in the EU. Of these, the German are the most skeptical, with less than a quarter of those surveyed seeing post-crisis EU solidarity. As the worst hit by the pandemic and the largest recipients of the EU Recovery Fund, the Italians seem to see more value in remaining in the bloc, with 30 percent of the respondents believing the crisis has brought the Europeans closer. As for the French, 27 percent expect the same.

Partly to blame is a lack of awareness about the EU pandemic recovery programs such as the EU Fund and Support to Mitigate Unemployment Risks in an Emergency (SURE). More than a quarter of the participants in the survey had not heard of the programs. In Germany and France, nearly a third. But the Italians were more aware of the programs, with just 15 percent not being aware.

Little wonder then that the overall approval of EU steps to fight the pandemic is just 30 percent. In fact, 45 percent actually believe the crisis will weaken EU solidarity. 'The EU remains unloved by many, despite the billion euro of grants to support the recovery,' says Allianz Chief Economist Ludovic Subran. 'The dissatisfaction runs deep. It is fueled by the perceived gap in national economic performance.'