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The EU's €3.4 trillion economic response to the #Coronavirus pandemic 

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EU economic response to the coronavirus pandemic

Marta Wieczorek, European Commission spokesperson on the economy and finance provided a quick overview of the EU’s response to the coronavirus pandemic making use of new and existing tools ahead of this week's European Council of heads of government. The overview estimates that the EU and national fiscal measures amount to almost € 3.4 trillion. 

The national responses amount to approximately €2.5trn. Normally, states are restrained in how much they are allowed to spend by the Growth and Stability Plan that includes limits on national deficit and debt levels, these have been relaxed in the circumstances and the EU has also relaxed its state aid measures. 

The EU economic support includes the SURE programme for short-time work schemes, aimed at protecting jobs, €70 billion from the EU budget (already part of the EU’s budget and therefore not new money), but with flexibility allowing the money to be spent on support health care and other items. The European Invesment Bank will be able to leverage up to €100bn and the ESM will be able to offer €240bn in support. 

Wieczorek added that all these measures are complemented by the European Central Bank's €700bn pandemic emergency purchase program of private and public securities during the crisis, in addition to the €120bn increase to their asset purchase program, announced earlier. She said that she expected these figures to continue to evolve over the days, weeks and months ahead.

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