October 29, 2020

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European Commission: Recession deeper, with big differences between countries

European Commission: Recession deeper, with big differences between countries

On the other hand, the first data in May and June show that the worst has recovered and that the economic recovery has begun. But this recovery will not be the same in the whole economic area, nor will it be the same in all euro area countries.

According to Commissioner Paolo Gentiloni, the projections show the devastating economic impact of the pandemic. “A history of growing differences, inequality, and insecurity.”

Uncertainties are also considerable. “The extent and duration of the pandemic and the blocking measures are largely unknown. The labour market can be more damaging, and the money problems of many companies lead to solvency problems and bankruptcies.”

Restoration package in the factories

According to Dombrovskis, the forecasts make one thing clear: “We need an agreement on our ambitious NextGenerationEU stimulus package to support the economy.”

EU leaders will negotiate a comprehensive stimulus package of €750 billion in Brussels next week to provide a lot of aid to the countries most affected. The discussion is mainly about aid or loans and under what conditions.