Great Recession in Europe

“With this new repayment, the optimal utilization of the cash resources of the Greek State is further and immediately achieved”

Spain passed a decree forcing landlords to slash rents for coronavirus-hit bars and restaurants by up to half today and announced plans to distribute EU COVID-19 recovery funds via public-private partnerships.

The next five years could prove pivotal for the Greek economy as the government seeks via its National Recovery and Sustainability Plan to utilize resources from the European Union's Recovery Fund amounting to 32 billion euros - which could reach €45 billion together with private funds - and power the country's GDP to a new level.

Even when (not if) coronavirus pandemic has passed, Europe could find the most damaging economic legacy is not the vast piles of government debt but the hundreds of billion euros in liabilities that have landed on companies.

Romania's economy shrank by 12.3 percent in the second quarter of this year compared to the first quarter, according to data released on Friday by the National Institute of Statistics. Compared to Q2 2019, the Gross Domestic Product fell 10.5 percent both in gross and seasonally adjusted terms.

Greece's economy contracted in January-to-March compared to last year's fourth quarter, the country's statistics service (ELSTAT) said on Thursday.

The seasonally adjusted data showed gross domestic product shrank 1.6 percent in the first quarter, at a faster pace compared to a 0.7 percent contraction in October-to-December.

"I fear German power less than her inactivity," remarked Poland's Foreign Minister Radek Sikorski at the height of the eurozone crisis. More than Germany leading Europe, Europe must fear a Germany that eschews its leadership responsibilities.

Greece is expected to have a net allocation of 33.4 billion euros from a European recovery fund, while the country's contribution to the fund will total 10.1 billion euros for a gross receipt of 43.5 billion euros, according to a plan presented by the European Commission on Wednesday.

We have gone out on the international markets and the interest in Romania has been almost 14 billion euros, of which we have chosen to borrow 3.3 billion euros, the Public Finance Minister Florin Citu said after the government meeting on Wednesday. He specified that the loan offered the possibility of financing expenditure from the budget without any problems.

Total credit in Greece's banking system expanded 0.7 percent year-on-year in March after a 1.0 percent decline in the previous month, Bank of Greece data showed on Friday.

[Reuters]