Economy of the European Union

President Klaus Iohannis said on Thursday that he would support the creation of an economic recovery fund that could benefit all EU member states and also mentioned the importance of the EU cohesion policy. He spoke before a video conference with members of the European Council on measures to contain the COVID-19 pandemic.

The European Union is aiming to launch a recovery fund on Jan 1, 2021 in the best case scenario, an EU official said on Thursday.

Spain has proposed the creation of a fund of up to 1.5 trillion euros ($1.62 trillion) financed by perpetual debt. 

[Reuters]

The Council of Ministers approved today the position of the Republic of Bulgaria for participation in the European Council meeting, which will be held on April 23 through video conferencing, the Government Information Service has announced.

Last year, 1,378 contracts were signed and BGN 844,340,088 were paid under the Rural Development Programme (RDP) 2014-2020, according to the Annual Report of the Agriculture State Fund and the Paying Agency for 2019 approved by the Council of Ministers, said the government press office, quoted by Focus News Agency.

According to preliminary data of the National Statistical Institute the General Government Institutional Sector reported in 2019 a surplus of 2 470 million BGN or 2.1% of GDP. The surplus in Central Government sub-sector amounted 2 349 million BGN or 2.0% of GDP.

European Central Bank President Christine Lagarde drew the line on how far the ECB could go in helping virus-stricken eurozone countries on Wednesday, saying lending to governments directly would be illegal and handing out cash to citizens difficult.

Eurozone government debt will surge this year on the coronavirus pandemic, but while another debt crisis is unlikely, large differences in indebtedness as countries emerge from the downturn could seriously test their unity.

European Union leaders meeting via videocall on Thursday are not expected to make any final decisions on exactly how to finance economic recovery from the coronavirus pandemic, diplomats and officials told Reuters.

Against the dramatic forecasts for fiscal figures to slump to levels reminiscent of the worst years of the debt crisis, there is also optimism within the government that things will actually turn out to be rather better.

In 2019, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €27.7 in the European Union of 27 Member States (EU) and €31.4 in the euro area.