Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

Eurozone ministers approve credit lines to help EU economies crippled by virus

by Agencies

ISTANBUL May 08, 2020 - 9:10 pm GMT+3
An European Union (EU) flag flutters in front of a newly hung banner that reads "Coronavirus Global Response" in front of The EU Commission building in Brussels, on May 6, 2020. (AFP Photo)
An European Union (EU) flag flutters in front of a newly hung banner that reads "Coronavirus Global Response" in front of The EU Commission building in Brussels, on May 6, 2020. (AFP Photo)
by Agencies May 08, 2020 9:10 pm
RECOMMENDED
Newly appointed Trade Minister Ömer Bolat (L) attends the handover ceremony alongside his predecessor Mehmet Muş, in Ankara, Türkiye, June 4, 2023. (AA Photo)

Greater output, trade primary goals: Türkiye's new Trade Minister Bolat

Turkish-economy

Eurozone ministers on Friday formally approved 240 billion euros ($260 billion) in credit lines to help European countries meet the crippling costs of fighting the coronavirus outbreak.

The plan will be run by the eurozone's rescue fund, the European Stability Mechanism, and is the first major step in the EU's joint efforts to lift the bloc's economy which is projected to contract by 7.7% this year.

The ESM rescued Greece's national bankruptcy after the 2008 financial crisis. Its aid programs are usually linked to tough conditions for fiscal tightening, overseen by outside monitors.

But, under the agreement announced in a joint statement, the EU executive will waive the usual tight supervision as long as spending remains linked to fighting the pandemic.

The agreement now has to be approved by some member states' parliaments, including the Bundestag in Germany.

Under the deal, every country in the 19-member single currency union can take low-interest loans amounting to as much as 2% of its economic output.

In the case of Italy and Spain, which were particularly hard hit by the coronavirus pandemic, this would be 36 billion euros and 25 billion euros respectively.

The 27 ministers from the European Union have meanwhile been struggling to agree on a more long-term rescue fund that would relaunch the economy and spread public spending more fairly throughout the continent.

The issue has caused bitterness between the EU's richer north and the more indebted south, with northerners led by the Netherlands accusing partners such as Italy or Spain of chronic overspending.

Eurogroup chief Mario Centeno insisted on Friday that an ambitious plan was crucial to ensure that economic recovery was felt equally across the continent.

"Not all countries have the same firepower, and we need to secure a level playing field," said Centeno, who is also Portugal's finance minister.

France has submitted its proposal for the fund that would involve joint borrowing by EU nations, but this is expected to be rejected by the so-called frugal northerners, including Germany.

Dutch Finance Minister Wopke Hoekstra insisted that the EU should take its time in coming up with a plan and that finding out what was needed is the priority.

How the plan will be funded is "secondary", he told reporters after the talks. "The most important thing here is to have a thorough discussion on what is needed, and how to structure it."

The European Commission – the EU's Brussels-based executive – was originally slated to come up with a plan linked to the bloc's budget on May 6, but this has been delayed for a few weeks at least.

EU governments to take stakes in virus-hit firms

Meanwhile, the European Commission on Friday adopted rules allowing EU governments to help virus-hit companies by acquiring stakes in the firms, which will be subjected to a ban on dividends, share buybacks, bonuses, and acquisitions.

An EU executive also said EU countries could grant subordinated loans on favorable terms to companies affected by the COVID-19 pandemic.

RECOMMENDED
Newly appointed Trade Minister Ömer Bolat (L) attends the handover ceremony alongside his predecessor Mehmet Muş, in Ankara, Türkiye, June 4, 2023. (AA Photo)

Greater output, trade primary goals: Türkiye's new Trade Minister Bolat

Turkish-economy
  • shortlink copied
  • Last Update: May 08, 2020 10:13 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Brazil's Dani Alves in action during the FIFA World Cup Qatar 2022 Round of 16 match between Brazil and South Korea at Stadium 974, Doha, Qatar, Dec. 5, 2022. (Getty Images Photo)

    Dani Alves remains in jail as new rape case's harrowing details unfold

    DANI-ALVES
    A fragment of the statue of Pan, the Greek god of shepherds and flocks in Greek mythology, discovered in Saraçhane Archaeology Park, Istanbul, Türkiye, June 1, 2023. (DHA Photo)

    Excavations in Istanbul unearth statue of Greek deity Pan

    pan

    Sudan's paramilitary forces take over Khartoum museum

    SUDAN

    President Erdoğan announces members of Türkiye's new cabinet

    RECEP-TAYYİP-ERDOĞAN
    No Image
    A look inside Russia's siege on Mariupol
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021