Eurozone finance ministers were bullish about the possibilities of the post-pandemic economic recovery on Friday but warned that Europe would also have to work hard to stop long-term economic harm and avoid falling behind China and the United States.

“We could see a recovery emerging, but we equally realize that the obstacles remain significant,” said Paschal Donohoe, head of the eurozone finance ministers, during a press conference.

“That the potential of scarring, the threat of damage from this epidemic in our society, in individuals, and on employer balance sheets is genuine,” he warned.

The pandemic's long-term "scarring" impacts might appear as a reduction in company investment because it happened during the financial crisis ten years ago, European Economics Commissioner Paolo Gentiloni said at a news conference.

It might also be seen in interruptions to young people's education and training, and decreases in investment in intangible assets and R&D, amid the EU's massive expenditures in digital and green transitions.

“We are extremely cognizant of the issues that many Europeans are facing right now, very mindful of the scars and the danger of the harm, and we'll do everything we can to resolve those,” Donohoe added. According to European Commission projections, the 27-nation EU will achieve pre-pandemic growth levels in the middle of 2022, with some countries, such as Germany and France, getting there towards the end of this year and others, such as Italy or Spain, not until the end of 2022.

However, estimates predict that China and the United States will recover faster, and the eurozone will need to move rapidly to enhance its economic potential if it is to remain amongst these best performers, according to France's finance minister.

“Do we want to play in the top league, or would we want to trail China and the United States?” According to Bruno le Maire

“Greater activity, more investment in new technologies is needed. We need to boost Europe's potential for growth. Returning to normalcy is not the correct goal. From a historical standpoint, this is the most important choice we will have to make in the next months,” he added.

Gentiloni reinforced his views, saying, "We cannot be content merely rebounding to the end-of-2019 GDP level." We're aiming for more than just a rebound. “We want robust, consistent, and long-term growth,” he stated.

In the next few months, the European Commission will examine EU states' reform and investment proposals focused on turning their economies more green and digital.

The initiatives will serve as the foundation for payments of low-interest grants and loans from the EU's 750 billion euro ($917 billion) recovery fund, with first payments scheduled by the end of July.

The extraordinary combined borrowing operation will assist growth, according to German Finance Minister Olaf Scholz, who welcomed it as a historic effort that will strengthen the EU and move it closer to the fiscal unity that markets have long wanted.

“Even once the emergency is past, we will realize that we have taken a significant step toward fiscal unification, which will strengthen us in the face of future crises,” he said upon entering the discussions. “Europe will emerge from this crisis stronger than it used to be,” he said.

Spain is opening its doors to all tourists: From June 7, Spain will let individuals vaccinated against COVID-19 from anywhere in the globe come into the country, with the hope of spurring a rebound in the country's decimated tourist economy.

Foreign tourism to Spain, the world's second most visited nation before the epidemic, fell by 80% last year as constraints brought leisure travel to a halt, leaving its beaches, palaces, and hotels nearly desolate.

Vaccinated travellers would be permitted to enter regardless of the place of origin, particularly those from the US, Prime Minister Pedro Sanchez declared on Friday at Madrid's FITUR international tourist trade expo.

From May 24, Spain will now let visitors from ten non-EU nations judged low-risk to enter without even a negative coronavirus PCR test.

Britain, Spain's largest international tourist market, is included, as will Australia, New Zealand, and Israel.

“They're welcome with no limitations or health constraints,” Sanchez said to reporters.

Spain was one of Europe's worst-affected countries during the pandemic, with nearly 78,000 coronavirus fatalities and 3.6 million illnesses. However, infection rates have decreased and immunisations are improving quickly, permitting most of its areas to eliminate curfews.

Sanchez, addressing a day after the EU struck a long-awaited agreement on digital vaccine certificates, stated that the resumption of tourism will be the main factor of Spain's economic recovery.