Economy of the European Union

ECB boon for Greece as euro finance ministers mull response to virus

As eurozone finance ministers met into the night to discuss the bloc's response to the Covid-19 pandemic, Prime Minister Kyriakos Mitsotakis meanwhile welcomed a decision by the European Central Bank to accept Greek government bonds as collateral as a move "that will further boost liquidity in the economy."

Markets, member-states eagerly await comprehensive EU crisis plan from Eurogroup

Markets and all EU member-states, especially those in Southern Europe which like Greece seek some form of mutualisation of debt have been  focusing like a laser beam on today's Eurogroup meeting and analysts expect joint action to help prop up the economies of member states - possibly including even so-called coronabonds.

Joint liability bonds for a joint European defense against the pandemic

The problem. Mitigating the impact of the Covid-19 pandemic will require a significant increase in public spending to rescue sinking economies and further shield health systems. At the same time, tax revenues will be collapsing as long as economic activity remains suppressed. Budget deficits will inevitably swell, leading to soaring public debt.