E. U. discussed on BBC World Service

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But let's start with news that broke overnight that the E. U. finance ministers have agreed a five hundred and forty billion dollar rescue package the European countries hit hard by the corona virus pandemic the chairman of the Eurogroup Marius and Tina announced the deal reached after marathon discussions in Brussels and said the recovery deal would be temporary and talked his response contains bold and ambitious proposals that will then be unsinkable just a few weeks ago we can only remember the response to the financial crisis of the last decade when Nero the a little too late this time around the front well the French finance minister Bruno le maire hailed the agreement as the most important economic plan in E. U. history the ministers fell short of accepting the Dimond by France and Italy to share of the cost of the crisis by issuing so called corona bones a business reporter Andrew what is in Hong Kong and joins us now for more Andrew the most important economic plan some people saying in E. U. history Mr Centeno saying about himself so how will this money be used in practical terms well they'll be learns of a hundred billion euros to go to a scheme to subsidize wages the idea is that companies would cut working hours and not constables the European investment bank is going to lend up to two hundred billion euros to companies and also the European stability mechanism this was created in the wake of the old hearing the financial crisis more than a decade ago and that's going to make two hundred and forty billion euros off cheap credit available to government so they'll be able to get basically keep spending money and they won't have to worry too much about gigantic interest bills that's the theory okay so the head of the International Monetary Fund towards the world is facing the worst economic crisis since the Great Depression of the nineteen thirties so let's talk about whether this will Hey there's a package will help in any way to avert such a prediction within the E. U. block well the CBS said that perhaps in the pasta perhaps twice or even three times this amount of money might be needed to try to completely blunt the effects of the corona virus in the European Union in particular in the the eurozone the countries which use the the European single currency I think this shows basically both the strengths and the weaknesses of the European Union obviously if these countries have been isolated if they weren't members of the European Union then perhaps they wouldn't be able to call upon each other to it to help and show some solidarity at the same time this is taken on the old full of negotiation and you still have a very big splits between the countries of northern Europe which tends to finance the line is a little it's a little ways back country sorry we were losing you a little bit just just tell us the last thing you said well yes at the southern Europeans have a tendency perhaps to be physically a little bit more responsible as far as the northern northern is concerned I'm one of the key failures of this package is to agree these Europe on these corona bones that basically rather than countries individually issuing bonds to borrow money they'll be euro Juanita bones that every country would we would guarantee in part now this was a big step in the formation of the United States many years ago when the states themselves got together and decided they would issue federal bonds for the United States government it was an important part of bonding and creating the United states of the European Union doesn't seem to have gotten that far yet Andrew thank you we'll leave it at the line is is a wobbling a little bit when we got the gist of what he was saying business reporter Andrew were turning to slide from Hong Kong around ninety.

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