Page 8 - ARUBA TODAY

A8 WORLD NEWS
Thursday 12 March 2020
Facing recession, Europe grasps for ways to limit damage

By DAVID McHUGH celed and football match-
AP Business Writer es are taking place in emp-
FRANKFURT, Germany (AP) ty stadiums.
— Suddenly staring reces- The investment fund an-
sion in the face, European nounced Tuesday by Eu-
leaders are lining up an ropean Commission Presi-
array of tax breaks, finan- dent Ursula von der Leyen
cial support for companies draws from the existing EU
and likely central bank budget and amounts to
measures in the hope of only some 0.1% of the an-
preventing the coronavi- nual 18.8 trillion euro ($20.7
rus outbreak from dealing trillion) EU economy.
long-term damage to the Von der Leyen said national
economy. leaders including German
Expectations have grown Chancellor Angela Merkel
that European Central and French President Em-
Bank officials will announce manuel Macron agreed
more monetary stimulus during a video conference
when they meet Thursday, Tuesday to "use all the
after the Bank of England tools at our disposal so that
acted Wednesday and the the European economy
U.S. Federal Reserve last weathers this storm." That
week. European Central Bank President Christine Lagarde talks to German Finance Minister Olaf Scholz includes being flexible in EU
The European Commission during a meeting of European Union Finance Ministers in Eurogroup format at the Justus Lipsius rules limiting debt and com-
plans to set up a 25 billion- building in Brussels, Monday, Feb. 17, 2020. ing up with clear guidelines
euro ($28 billion) invest- Associated Press on permissible state aid to
ment fund to support the the 19 countries that use to a short-term issue be- between worker. Tronch- companies.
health care system, busi- the euro currency faces yond their control. etti Provera said Pirelli had At the national level, Italy,
nesses and labor market constraints from the lack of Marco Tronchetti Provera, learned from its experience which has been hit hardest
measures. The Italian and a large central treasury, a CEO of Italian tire maker coping with the outbreak by far by the virus outbreak,
British governments are of- hurdle other large econo- Pirelli, said that decisive ac- in China, where it has three is earmarking 25 billion eu-
fering separate packages mies like the U.S. and China tion on a large scale was plants, and is still able to ros to confront the crisis. It
of at least the same size. do not face. needed: "Very quickly, we ship tires from Italy, which will support health services,
Yet any such actions will "The world is facing a medi- need to be ready to make accounts for 6-7% of global ensure people do not lose
likely be more damage lim- cal emergency that mon- a large plan of investments production. jobs due to travel restric-
itation than cure. etary and fiscal policy also at the European level Besides manufacturers, tions and support families
Monetary stimulus and cannot fix," said Holger in order to recover. among the most affect- by, for example, delaying
government spending can Schmieding, chief econo- "It is a war that can be very ed companies are those payments on mortgages
spur demand for goods. mist at Berenberg private short, with a contained involved in travel. The and taxes.
But the coronavirus deals a bank. number of victims. It is a number of people going Britain, no longer a mem-
shock from the supply side The best policymakers can very quick war if we handle through European airports ber of the European Union
by closing businesses and do for the economy is to it properly." is expected to fall by 187 but still an important trade
making people stay home, prevent the virus from deal- One employee at Pire- million this year, hurting partner, made available 30
highlighted by Italy's dra- ing prolonged damage lli's main Italian production hotels, restaurants, cab- billion pounds ($39 billion)
matic decision this week to even after the outbreak plant near Turin tested posi- drivers and airlines, among in its new budget to cush-
limit travel and public gath- ends, to keep small- and tive for the virus, requiring others. Lufthansa is cutting ion the impact of the out-
erings across the country. medium-sized companies the company to reduce up to half of its flights from break. The Bank of England
Lower interest rates or tax that provide most of the production due to sanita- April. Ryanair suspended added stimulus by cutting
cuts cannot solve that. jobs in the economy from tion work as well as mea- all flights to and from Italy. a key interest benchmark
Meanwhile, action to help going out of business due sures to put more space Trade fairs have been can- to 0.25% from 0.75%.q

France, Spain honor hundreds of terrorism victims, vow unity

Associated Press of victims. The European troopers in the Toulouse
PARIS (AP) — The presi- Union chose March 11 as region.
dent of France and the a day of continent-wide Extremists claiming links
king of Spain paid hom- commemoration of ter- to the Islamic State group
age Wednesday to victims rorism victims after the or Al-Qaida hit France
of terrorism in a special Madrid train bombing on repeatedly in 2015 and
ceremony prompted by March 11, 2004 that killed 2016. Among their vic-
attacks that hit both their nearly 200 people and tims: cartoonists at satirical
countries and changed woke Europe up to 21st newspaper Charlie Heb-
Europe’s security posture. century threats of Islamic do, shoppers at a kosher
France’s Emmanuel Ma- extremism. market, concert-goers
cron and Spain’s King Fe- Macron paid tribute to at the Bataclan, diners
lipe and Queen Letizia led the victims of a string of in Paris cafes, an elderly
a ceremony on Trocadero attacks in France, starting priest at the altar, holiday
French President Emmanuel Macron delivers his speech during plaza overlooking the Eiffel with shootings in 2012 that revelers on the seaside of
a ceremony to honor victims of terror attacks in Europe, at the
Trocadero in Paris, Wednesday March 11, 2020. Tower with survivors of ter- killed children at a Jewish Nice, and several police
Associated Press rorist attacks and families school, a rabbi and para- officers.q