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Euro zone cohesion challenged by second wave of pandemic

2021-01-18T19:01:50.645Z


Europe could fall back into recession until spring. Europe is facing a new economic air hole due to the virulence of the second wave of the coronavirus, while the 750 billion euros of the recovery fund common to the Twenty-Seven are long overdue. Some Member States, more than others, find themselves caught in a vice. These risks of increased divergences within the euro zone were at the heart of discussions between the finance ministers during a mee


Europe is facing a new economic air hole due to the virulence of the second wave of the coronavirus, while the 750 billion euros of the recovery fund common to the Twenty-Seven are long overdue.

Some Member States, more than others, find themselves caught in a vice.

These risks of increased divergences within the euro zone were at the heart of discussions between the finance ministers during a meeting of the Eurogroup on Monday afternoon, followed this Tuesday morning by a summit of those of the European Union .

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The tension is at its height in Italy, where the government of Giuseppe Conte is fighting for its survival in a political crisis born - ironically - from disagreements over the future use of European funds for recovery.

With a debt close to 160%, the country is particularly worried, while Germany has shown its ability to limit the damage, posting a decline in its GDP of "only" 5% in 2020.

"The Covid is likely to worsen pre-existing imbalances,

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Source: lefigaro

All news articles on 2021-01-18

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