Wrangling over virus recovery funding persists around the globe
Political turmoil plagues U.S., Europe as groups debate relief packages
MIAMI— The desperate race to corral the coronavirus pandemic took on even greater urgency Monday as a burgeoning economic crisis collided with political turmoil. Even as the latest experimental vaccine appeared to show promise, politicians in Washington seemed far apart in finding a way to bring financial relief to Americans.
As the first federal relief package was poised to come to an end, members of Congress were trying to come to agreement on another package to ease the financial burden Americans have dealt with as businesses have endured repeated shutterings or pauses since the virus first appeared on the continent.
The political turmoil in the U.S. and in Europe was playing out as there appeared to be good news on the medical front as scientists involved in the development of at least one vaccine reported promising results in an early trial.
Even as Republicans were at odds with Democrats over how much money was enough, top Republican members of Congress also faced pushback from the White House. GOP leaders were expected to meet Monday with President Donald Trump as the White House panned some $25 billion (U.S.) in the GOP’s plan that would be devoted to testing and tracing, said one Republican familiar with the discussions.
There remains a wide gulf between the GOP and Democratic packages, with Democrats passing in the House a $3 trillion package, while the Republican package came in at about $1 trillion.
“We have to end this virus,” House Speaker Nancy Pelosi said Monday on MSNBC. Pelosi said any attempt by the White House to block testing money “goes beyond ignorance.”
Pelosi’s bill, approved in May, included $75 billion for testing and tracing to try to get a handle on the virus spread, funneled $100 billion to schools to safely reopen and called for $1 trillion to be sent to cash-strapped states to pay essential workers and prevent layoffs. The measure would give cash stipends to Americans, and bolster rental and mortgage and other safety net protections. In the two months since Pelosi’s bill passed, the U.S. has had 50,000 more deaths and two million more infections. “If we don’t invest the money now, it will be much worse,” Pelosi said.
The political stakes were high for all sides before the November election, but even more so for the nation, which has now registered more coronavirus infections and deaths than any other country. With 17 straight weeks of unemployment claims topping one million, many households were facing a cash crunch and losing employer-backed health insurance coverage.
The virus also has led to political rancour around the globe. European Union leaders have met for several days, fighting over an unprecedented1.85 trillion-euro ($2.87 trillion Canadian) EU budget and coronavirus recovery fund. The prolonged debates have been marked by walkouts and insults. The pandemic has sent the EU into a tailspin, killing around 135,000 people and plunging its economy into an estimated contraction of 8.3 per cent this year.