European debt crisis

Greece's central banker said on Monday he will advise the government to make use of the cheap, long-term credit lines that will be made available by the Pandemic Crisis Support fund of the European Stability Mechanism (ESM).

The European Bank for Reconstruction and Development (EBRD) has downgraded its estimates of Romania's economic developments in 2020 as a result of the crisis caused by the coronavirus pandemic, according to the bank's latest Regional Economic Prospects published on Wednesday.

Eurozone finance ministers agreed on Friday to offer cheap credit lines that can be tapped until the end of 2022 by countries hit by the coronavirus pandemic, two European officials said.

"All agreed. The program can be used until the end of 2022," one of the officials said.

Germany's highest court on Tuesday gave the European Central Bank (ECB) three months to justify bond purchases under its flagship stimulus program or lose the Bundesbank as a participant, raising questions about both the scheme and the euro's future.

It is now clear that in Europe, as elsewhere, neither health services nor social protection systems were in place when Covid-19 hit. The European "project" is again being tested.

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.

Memories of Greece's bailout years are returning as a result of the macroeconomic shocks caused by the Covid-19 pandemic, according to the International Monetary Fund, which however is also predicting a return to growth in 2021.

Governments from the 19 countries that use the euro agreed on Thursday on a package of measures that could provide more than a half-trillion euros ($550 billion) for companies, workers and health systems to cushion the economic impact of the virus outbreak.

An agreement among eurozone finance ministers on further joint measures to support their economies through the coronavirus crisis is within reach, France's finance minister said on Thursday.

The World Bank has revised significantly its estimates of the Romanian economy's advance this year, down to 0.3 percent from 3.8 percent, as projected three months ago, but growth would gradually bounce back in the second half of 2020 and further accelerate in 2021 to 4.4 percent, according to the World Bank's economic update spring 2020.