EU says virus fund access to be linked to its budget advice

The European Union signaled Wednesday that it will not punish member countries for breaking the bloc's deficit rules to tackle the coronavirus but that it could condition their access to sorely-needed recovery funds on them following its advice on how to manage their budgets.

The 27-nation bloc is forecast to enter "a recession of historic proportions this year" as the coronavirus ravages its economies, with an average drop in output of 7.5 percent. Virtually every country has broken the deficit limit of 3 percent of GDP as they've spent to keep health care systems, businesses and jobs alive.

"In all cases, apart (from) Bulgaria, we concluded that the deficit criteria of the treaty is not complied with. In normal times, this would lead to the opening of an excessive deficit procedure. But these are exceptional times," European Commission Executive Vice-President...