EMU
EU Commission expects deeper recession than in 2009
The economic slump caused by the coronavirus COVID-19 is expected to be deeper than the 2009 Great Recession, according to a European Commission document seen by EURACTIV.
Leaders clash over stimulus against pandemic, pass hot potato to Eurogroup
EU leaders on Thursday (26 March) continued to disagree over the economic response to the coronavirus as Northern countries rejected the idea of issuing joint debt, known as "corona bonds", proposed by nine member states to finance the recovery.
France wants EU to win virus ‘communications battle’
European solidarity is being put to the test as some EU member states are not supporting the idea of 'corona bonds' and the EU's approach to communicating with the public about the crisis remains too discreet, according to Paris. EURACTIV France reports.
Germans and Dutch set to block EU ‘corona bonds’ at video summit
Germany and the Netherlands will lead opposition to issuing joint bonds to help revive the European Union economy from a deep slump caused by the coronavirus when the bloc's national leaders discuss emergency assistance on Thursday (26 March).
Eurogroup nearing agreement to use bailout fund against pandemic
Countries of the euro area are close to an agreement to use the European Stability Mechanism to provide credit lines of up to 2% of their GDP to tackle the consequences of the coronavirus COVID-19.
COVID-19: France wants to activate EU bailout fund without conditions or delay
The financial crisis management tool of the eurozone countries must be activated without delay and without conditions, said French Economy Minister Bruno Le Maire before the Eurogroup meeting on Tuesday (24 March). EURACTIV France reports.
EU countries warn of ‘severe economic downturn’, suspend Stability Pact
EU member states took the unprecedented decision to suspend the Stability and Growth Pact obligations on Monday (23 March), in order to allow billions of euros in extra spending to mitigate the "severe economic downturn" caused by the coronavirus.
Commission proposes unprecedented suspension of EU’s fiscal rules
The European Commission proposed for the first time on Friday (20 March) the activation of the general escape clause that would ‘pause’ the adjustments member states have to do to meet their fiscal targets and allow them to spend "as much as they need".
ECB unveils €750 billion stimulus against coronavirus
The European Central Bank unexpectedly announced just before midnight on Wednesday (18 March) that it would spend €750 billion in bond purchases to calm down sovereign debt markets, in the strongest signal in the euro area to date that it was ready to fight against the economic fallout of the coronavirus.
Germany and Netherlands ‘open’ to considering ‘coronabonds’
Germany and The Netherlands, two of the most staunch opponents to the idea of issuing common debt in the eurozone, would be “open” to discuss eurobonds to mitigate the economic impact of the coronavirus COVID-19.
Euro area countries mobilise around €120 billion against coronavirus
Euro area countries have mobilised around 1% of their GDP (€120 billion) to fight against the economic fallout from the coronavirus but continued to disagree over deploying a joint fiscal stimulus, after a joint teleconference held on Monday (16 March).
Coronavirus ‘very likely’ to push Europe into recession, Commission warns
The European Commission said on Friday (13 March) that the coronavirus COVID-19 will “very likely” push the European economy into recession this year, and warned that the rebound next year will depend on a bold response from member states.
ECB approves more money, seeks strong fiscal stimulus versus coronavirus
The ECB decided on Thursday to inject more money into the real economy to combat the economic fallout of coronavirus. As markets continued to plunge, the bank's president Christine Lagarde stepped up pressure on member states to pass an “ambitious and collective” fiscal stimulus.
EU pledges €25 billion to weather coronavirus impact
EU institutions and member states agreed on Tuesday (10 March) to ease EU spending rules and mobilise at least €25 billion of EU funds to address the economic fallout from the coronavirus.
EU finance ministers hold fire on combating coronavirus
EU finance ministers promised on Wednesday (4 March) a coordinated response to address the economic impact of coronavirus but postponed any decision at least until their formal meeting in mid-March.
‘Too early to assess’ the economic impact of coronavirus, Commission says
The European Commission won't consider the effects of the coronavirus outbreak in its updated growth forecast, expected on Thursday (13 February), saying it is "too early" to estimate the impact of the virus on the region’s output, EU sources told EURACTIV.
IMF warns of the risk of central banks’ ‘cheap money’
The monetary stimulus has been one of the main engines of growth over the past years, but continuing with the supply of 'cheap money' could hurt low-income countries, fuel risky investments and affect savers, warned the IMF on Friday (24 January).
ECB’s Lagarde warns of ‘danger of doing nothing’ on climate
ECB chief Christine Lagarde on Thursday (23 January) said the bank would study what role it could play in combatting climate change as part of a major policy review, warning of "the danger of doing nothing".
IMF calls for ‘more automatism’ in public spending
As monetary policy nears its limits to lift the world's sluggish economy, the International Monetary Fund told governments on Tuesday (21 January) to introduce "more automatism" in their fiscal rules in order to counter the economic slowdown.
Eurozone 2020: The race against the clouds
After seven years of growth, the eurozone's outlook is deteriorating. There is a risk of a recession if the trade war with Washington worsens, while member states continue to disagree over the completion of the economic and monetary union that would help them cope with a downturn.
Germany’s incoming ECB board member opposes pumping cash into green assets
The European Central Bank should not favour so-called "green" assets in its multi-trillion-euro bond-buying programme or its work as bank supervisor, incoming ECB board member Isabel Schnabel said in an interview published on Monday (30 December).
Brussels lowers expectations about ‘green’ overhaul of Stability and Growth Pact
The European Commission is cautious about loosening EU fiscal rules in order to incentivise ‘green’ investment by member states. Valdis Dombrovskis, the Commission Vice-President for the economy, said on Tuesday (17 December) he wants to avoid “divisive” issues.
Conte buys Italy’s government more time over eurozone bailout fund
Italy's prime minister Giuseppe Conte claimed victory on Friday (13 December), after changing the wording of the Euro summit's conclusion postponing a final agreement on the reform of the eurozone bailout fund.