According to the Vice-President of the European Commission Valdis Dombrovskis, in 2020 the EU will enter a recession “of historic proportions” with an average production decline of 7.5 per cent. Almost every country, except Bulgaria, have overcome the deficit limit of 3 percent of GDP. In normal times, this leads to the opening of the relevant procedure under the European Commission. “But now it is exceptional times,” – said the official. He believes that the EU must be able to withstand the economic storm and at the same time stimulate the growth of production and to invest in climate protection.
Vice-President of the EC warned that in the medium term, member countries will return to strict budget discipline. Currently, the recommendations of Brussels are concentrated around the use of the Fund of reconstruction, the details of which will be released may 27. Dombrovskis does not rule out that we are talking about the amount of about EUR 1 trillion.
Recall that at the EU summit on 23 April approved a package of assistance to the economy in the amount of 540 billion euros, which consists of credit obligations of the European stability mechanism (ESM), loans from the European investment Bank, as well as programs to assist businesses, agriculture and people, the working week has decreased because of the crisis. However, until a decision is made about the formation of a common Fund recovery in the range of 1.6 to 2 trillion euros.
