, the EU adopted an “unprecedented” economic measures to combat the pandemic in the amount of 540 billion euros.
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European Union Finance Ministers agreed on a package of measures to 540 billion euros to combat the economic consequences of a global pandemic, establishing an unprecedented plan to prevent a recession. This was announced by the Chairman of the Eurogroup, the Finance Minister of Portugal mário Centeno to be held on Thursday an emergency call. His words leads to “Interfax”.
“Today, we agreed on three networks security and recovery plan so that our economy can grow together, not apart, when the crisis will be left behind,” said Centeno. “Three network security” is designed for workers, employers and governments. In the scheme, support workers will be allocated 100 billion euros to help deal with unemployment and to help save jobs. This is a temporary financial instrument support schemes reduction of working hours.
the European investment Bank will support EU enterprises loans of 200 billion Euro, priority will be given to small and medium enterprises. The European stability mechanism (ESM) will be used to provide governments with credit lines of up to 2% of their GDP, i.e. amounting to 240 billion euros. Money the ESM will be provided to the most affected countries, provided their spending on health care and other needs directly related to overcoming the epidemic. The ESM funds to fight picsledstviya of the pandemic is scheduled to enter into effect in two weeks.
the Meeting also agreed to work on the creation of a temporary Fund economic recovery. Through it from the EU budget will be financed programmes to give impetus to the economy. It should work immediately with the beginning of the recovery period. Its size, funding and many details are still unresolved.
Some countries remain opposed to the idea of a common debt or Eurobonds, where joint European loans would be guaranteed by the countries of the Union as a whole. In their opinion, this concept will not help Europe in the long term. However, Italy and a number of “southern” countries continue to defend this idea, and it probably will be discussed at the next EU summit. In addition, the new deal needs to be approved by EU leaders next week.
on March 26, the G20 held a summit during which he announced his intention to pour more than $5 trillion into the world economy “through targeted fiscal policies, economic measures and guarantee schemes to combat social, economic and financial consequences of a pandemic”.
in addition, States the “group of twenty” will coordinate measures in the economic sphere, taken to counter the effects of the pandemic coronavirus, and “use all available policy instruments to minimize the economic and social impact of the pandemic, to restore global growth, support the stability of the market”.
Russian President Vladimir Putin proposed for the period of the pandemic coronavirus to impose a moratorium on sanctions in respect of goods of the first necessity. According to him, the G20 countries need a common plan to support economies, to stabilize the situation and restore confidence in global markets in the spread of the coronavirus. A major role in increasingtaxation of global demand should play a national economy.
in addition, the President of the Russian Federation proposed to establish under the auspices of the International monetary Fund (IMF), the special Fund that will be financed by the Central banks and will go to the provision of borrowing at a zero rate for the implementation of measures to combat coronavirus. More than 80 countries have asked the IMF about $ 20 billion to fight the pandemic. A significant portion of the requests came from countries with low income, small countries and countries with emerging economies.