Europe tries to protect its economy from the negative effects that the coronavirus is causing. International institutions such as the OECD and the IMF are lowering their forecasts of both global and European growth, due to the virus epidemic. The Eurogroup, consisting of EU ministers discussing matters regarding the euro currency, is now taking measures.
“We are prepared to use all appropriate political instruments to achieve strong, sustainable growth and protect ourselves from downside risks,” Mario Centeno, president of the Eurogroup, said Wednesday after an extraordinary meeting of the Economy Ministers held through teleconference.
This will be done in two ways. On the one hand, fiscal measures will be taken to stimulate the economy, and on the other, a temporary relaxation of the deficit path will be introduced in an attempt to face the economic impact of the virus.
This certainly is good news for Spain, as companies with production plants in the country have warned that the coronavirus outbreak already is affecting the production and risking the jobs of their employees. Hopefully, the actions of the Eurogroup will help them recover quickly.