Due to the coronavirus pandemic, the head of the European rescue fund ESM expects further financial aid for the European economy to be worth EUR 500 billion. “I would say that we need at least another 500 billion euros from the European institutions for the second phase, but it could be more,” said Klaus Regling of the Italian daily “Corriere della Sera”.
“To do this, we have to discuss new measures impartially, but we also have to use the existing institutions, particularly the Commission and the EU budget, because it is easier.”
Ten days ago, the European finance ministers agreed on a € 500 billion corona rescue package, which comprises three points: loans from the development bank EIB for small and medium-sized companies, a European short-time work allowance and precautionary credit lines from the ESM rescue fund. In addition, a reconstruction fund for the economy is to follow.
“Probably worst recession since the 1930s”
Aid is needed because the economy will plunge into recession because of the pandemic. The International Monetary Fund speaks this year of what is probably the worst recession since the Great Depression in the 1930s.
He expects the economy in the euro zone to shrink by 7.5 percent in 2020, and a decline of three percent for the global economy. (apa)
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