To stabilize the European economy against the backdrop of the coronavirus epidemic, finance ministers of the EU countries agreed on the application of fiscal measures at about a percent of GDP in 2020. They will begin to be used in addition to all other support methods. This is stated in statement Eurogroups.
In addition to the obligation to distribute money from the budget, European governments have agreed to defer tax payments and provide state guarantees to enterprises in the amount of up to ten percent of GDP.
As noted in the statement, these values can later grow if necessary. Ministers emphasized that exceptional circumstances compel us to act quickly and in a coordinated manner.
Separately, it is indicated that support is primarily necessary for companies that directly face the consequences of coronavirus. For example, those who work in the field of transport and tourism. They can be given concessions in the execution of state contracts and provide additional state guarantees for obtaining loans. The Eurogroup also noted the need for immediate allocation of money to fight the disease and support employees in the affected sectors. We are talking about the extension of sickness and unemployment benefits, the deferral of income tax.
Earlier it was reported that serious problems due to the situation began to experience automakers. Due to demand problems and supply chain disruptions, they are massively close their plants in the EU. In Germany, they do not exclude that they will go to a temporary nationalization enterprises, if the situation will threaten their existence.