EU cannot help Italy and Spain to tackle COVID-19 if both countries don't discuss it. (Image via Anadolu Agency)

EU cancels assistance for Italy and Spain

Alfonsus Adi Putra
Politics & Economic
Economic
Mar 31, 2020
2253
The European Union (EU) canceled to help Italy and Spain tackle the novel coronavirus (COVID-19) pandemic outbreak. EU refused to help because there was no mutual agreement between the two countries. Previously, all EU countries pledged to pump the economy by giving stimulus for the businesspeople and workers amid the COVID-19-led recessions.

If they want the EU to help, the EU gave the decision to each of the country’s Finance Minister and they were required to formulate a plan by the next two weeks. Local governments also loosened the limit of the budget deficit.

Meanwhile, the EU central bank also rolled out billions of Euros to the market in order to prevent financial crises throughout the land. From 19 EU countries, nine including Italy and Spain proposed to issue debt securities. The fund then could be used for the countries to alleviate the negative, long-term effects of COVID-19.

Germany, Austria, and the Netherlands opposed the idea, worrying that the debt securities would mean more load on the taxpayers to bear the expense of the developing countries. EU was supposed to yield €410 billion by running on the European Stability Mechanism (ESM), a joint bailout gathered from the EU members to assist the other country members.

Should the EU fail to assist its country members, it would be a huge problem.

Source: https://bit.ly/2wNlE4U

Politics , Economy , International , Europe , EU , Italy , Spain , Germany , COVID-19