Europe still without a plan of economic recovery

L’Europe toujours sans plan de relance économique

Photograph: Gerard Cerles Agence France-Presse
The ministers propose that the european stability Mechanism (ESM), created in 2012, can lend money to a troubled State, and this, up to 2% of its GDP.

A meeting marathon of the member States of the EU to find an economic answer common coronavirus was completed Wednesday on a failure, The Hague including refusing to yield to requests of countries of the South.

“After 16 hours of discussions, we have approached to an agreement, but we’re not there yet “, was able to find Wednesday morning Mario Centeno, the president of the Eurogroup, the body that brings together the Finance ministers of the euro area. It has convened a new meeting by video conference on Thursday from 17 h, which could also drag on because of the inflexibility of the netherlands.

The failure of ministers following a european Council of heads of State and government on 26 march, which had pitted the countries of the north and those to the south on the economic answer to make to the announced recession.

6%

This is the percentage of decrease of the French GDP in the first three months of the year, according to estimates of the Bank of France.

Several european sources attribute the failure of the meeting in the netherlands, who refuse to give in to Italian applications on loans that may be granted to States in difficulty by the emergency fund of the euro area. The ministers propose that the european stability Mechanism (ESM), created in 2012 when the debt crisis in the euro zone and financed by the member States, may lend money to a troubled State, and this, up to 2 % of its GDP. The option is rejected by Italy, the european country most affected by the epidemic, as these loans come with conditions, such as a request for reforms, which requires The Hague.

France in recession

Furthermore, struck-hit by the epidemic COVID-19, the French economy collapsed in the first quarter, becoming the first major economy to enter a recession that promises to be unprecedented since the end of the Second world War. According to an estimate published Wednesday by the Bank of France, the GDP fell by about 6 % in the first three months of the year, the worst quarterly performance of the French economy since 1945. The GDP has already declined by 0.1 % in the fourth quarter, according to the national Institute of statistics, France is technically in recession.

 

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