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THE EU HAS offered member states “maximum flexibility” to boost spending and subsidies beyond normal rules to help fight the Covid-19 coronavirus.
“The shock is temporary, but we must work together to ensure that it is as short, and as limited as possible,” EU Commission chief Ursula von der Leyen said.
“Therefore member states should be encouraged and they should feel comfortable to take all the necessary measures to support the most effective sectors.”
The outbreak that began in China has now spread across the globe, with Italy — the bloc’s third biggest economy — one of the worst hit countries.
The European Commission, the EU’s executive arm, has limited firepower to fight an economic downturn, with loosening public spending rules its most powerful tool.
“What we need now is to use flexibility within EU fiscal rules to allow member states to fully respond to the crisis,” said EU executive vice president Valdis Dombrovskis.
The message was meant for heavily-indebted Italy, which has announced €25 billion in emergency spending, technically violating EU debt and deficit rules.
Speaking about Italy in particular, von der Leyen told reporters: “We are absolutely ready to help Italy with whatever is necessary. This is of the utmost importance. This country is severely hit by coronavirus.”
“So whatever is necessary, we support. Whatever they will need, we will answer.”
Von der Leyen also boosted the amount of existing EU budget money to be devoted to the crisis to €37 billion.
The spending in question will come from EU subsidies left unspent and rules will be loosened to keep funds flowing.
All eyes are on a meeting on Monday of EU finance ministers who between them have more power to build a response sizeable enough to be felt on the markets.
The situation was made more urgent after Christine Lagarde, the European Central Bank chief, spooked markets by saying that managing Italy’s public borrowing capacity was not a priority.
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Glad we’re in the EU and not part of the UK. Poor Scotland and Northern Ireland.
@John C: The UK can print their own cash to pay their way out of this crisis. The EU just gave €120bln to the bond markets.
@Daniel Dunne: that’s not how currency works. If you print more of it, the currency gets devalued.
@Daniel Dunne: the end result is actually the same. The US do it the same way as the EU, think about that!!!
@Daniel Dunne: pei
@Daniel Dunne: pei
Thanks EU for granting us permission to save ourselves…
@Spartacus Ireland: /yawn
@Gavin Conran: You’re tired LOL
@Spartacus Ireland: prob tired from hearing rubbish. ;-)
@Spartacus Ireland: fly over to England and enjoy their response to this. Off you go…
@Spartacus Ireland: its typical from the EU a pandemic is declared and all they talk about is the economy and the economic impact!! there are people behind the euro signs EU. these dregs really have way too much control and power over our lives i hope people learn a lot of valuable lessons about this and other things when we come out of this mess at some point.
All of a sudden there is loads of Money?
@Vincent Sharpe: It’s called “emergency funding” Thank God we’re in a position to avail of it
As EU maintian open border for refugees at greek / turkey i am not saying stop immigration i am saying that border be closed and eu INVEST member fund to close that border for 30 days and set up quarantine facility to ensure safe entry and all money Italy sent not dumped into waste. Do they realize that they cld be pursing policy that cld set up eu as simply a unsafe place to move in and invest in and by all means have immigration but under public health compliance that just means MONEY our money being spent . It seem simple for me so why is eu giving our money to refugees to go back ?
@Mary Ward: As simple as your grasp of English?
This is not enough. This money and the €120bln to the bond markets should be used to guarantee wages during the Covid 19 Isolation Period thereby protecting the livelihoods of the people and the viability of businesses. It’s in extraordinary times like this that trickle UP economic practices should be implemented.
The bond markets were already bailed out by the Irish people to the tune of €64bln. I don’t see any good reason to give them twice that amount this time around to blow it all again… Anyone else agree???
@Daniel Dunne: I’m not sure I really understand what you mean, and I don’t think you do either.
You’re talking about how we bought bad debts and that we should go back in time, not do that, and spend money on combating coronavirus?
If britains loony tunes government has decided to let it run riot with its idiotic non action plans then they may put all other surrounding countries difficult efforts in jeopardy.
@Supes Kz: jesus you really haven’t a clue have you bet you tune in every evening for the six one, the British government are currently being applauded by all sectors of society over there and the people feel comfortable in their governments ability to handle the situation and that is all that matters that their people are happy with them, they no longer have to worry about what a bunch of foreigners in Europe think and can do what they believe is right by their people who appear to be loving them.
@Jonnie Kenny: Take your love back to England. Off you go.
@Jonnie Kenny: Lol yes you’re correct I believe Bojo is currently in line for multiple Nobel awards on the areas of virology and herd immunity alongside bridge building.
Much of Englands population is also as you suggest currently erecting statues of bojo the clown and holding mass gathering street parties. I’m sure RTÉ news is at least on par with infowars.
NTMA was able to raise another €1B yesterday morning before subsequent events so that may help with extra revenue needed as a result of Convid19 threat.
€74 a head. Till be grand. We hope
And what are our public rep govt getting report of overspending on health and dail saying that all spending up to taoiseach but he is going with EU cos of Lenihan deal not paid back ? So what is dail going to do to whom Govt is accountable If people think eu money free .. i dont think this is a time to make any such assumptions ? See section on policies ?? P 18
https://ec.europa.eu/info/sites/info/files/economy-finance/ip122_en.pdf
Superb Press Conference yesterday by Ursula van de Laden New EU Commission President…..glad Ireland is following EU directives…..everyone should watch on UTube.
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