Business to Europe: Get busy on stimulus
MAJOR BUSINESS groups in Germany, France and Italy are urging European governments to ramp up their joint fiscal stimulus efforts against the economic downturn caused by the virus outbreak, saying that the EU response “must be of an unprecedented scale”.
The call was made in a four-page appeal published Tuesday by Germany’s BDI, Italy’s Confindustria, and France’s Medef business confederations.
The business groups said that European stimulus efforts must go beyond the first package of emergency help at the European level, involving lending and guarantees from the European Investment Bank, the European Commission and the European Stability Mechanism bailout fund.
“We call on European leaders to rapidly approve a bold proposal” for the upcoming
EU budget and for a European recovery fund, the groups said.
Leaders of the 19 countries that use the euro currency have approved up to – €540 billion in emergency loans, but have balked at shared borrowing that would help keep debt levels at the national levelIrfornoromck The European Commission predicts the Eurozone economy will shrink by 7J.a7m.pPeubrliccSeenrvticetsh5is% yD ear, more than during the gloJabma. lPufbinlicaSnercvicaels c5%riCsis in 2009. That will sap tax revJeanmu.
need to spend more to support healthcare, businesses and the
Italy, which has been outbreak, in particular. faces hJiagmhaicpa rPero-deuxceirsstGinrogupdebt levels that could constraiJnamsatiicma sExscphaengneding. Common borrowing andJafmisacicanl nsfers have been opposed by countrieJsetcinonnCorrptohraetiornn Europe, like Germany, the NetheJMrMlaBn7.d5%s dShaAreus stria, that are in better fiscal shape. Nine members of the 19-country Eurozone, including France, Spain, Italy and Ireland, have signed a letter supporting common borrowing. European leaders have pushed the question to the European Commission, which is developing a proposal a recovery fund.
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