The new Covid-19 epidemic will not affect the EU economy as much as it did in the bloc member states this time last year, the EU Commission said on Wednesday (November 24).
“Our forecast is that the economic impact will not be as great as it was last winter,” Finance Minister Paolo Gentiloni told reporters, commenting on EU officials.
He added that “it is not because the economy is more closely linked to disease, but because we have a vaccine” – and more vaccines can help prevent economic hardship.
Gentiloni still warned that the service economy, which is highly interconnected, would be the first to be affected – but added that member governments should decide whether to close or close.
“Our only message is to take it seriously and not assume that the financial crisis is the same as last year,” he said.
The EU health agency, the European Center for Disease Prevention and Control (ECDC), warned in a report Wednesday on the high risk of death and hospitalization in December and January, if it does not happen.
The World Health Organization says Covid-19 cases jumped by 11 percent in Europe last week, the only region in the world where the virus continues to spread since mid-October.
A number of member countries, including Austria, Belgium, and the Netherlands, have already put in place measures to reduce disease.
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The commission says that the European economy is on the decline due to the recession.
However, it added that there are a number of risks such as rising electricity prices, rising prices (all of which EU officials are expected to ease next year) and trade barriers.
In reviewing the member states’ budget, the commission warned that countries with high debt levels, such as Belgium, France, Greece, Italy, Portugal and Spain, could increase spending beyond their means.
The commission also urged Italy to reconsider government spending, as interest rates on GDP exceed 150 percent.
The EU chief urged the government of Prime Minister Mario Draghi to follow the economic policy “wisely”.
“We need to find a way to reduce debt that does not contradict growth,” Gentiloni said – adding that the Italian economy is “in good shape”.
The issue goes to the heart of the ongoing EU controversy over the re-enactment of the bloc’s controversial legislation due to the economic crisis and the epidemic.
The dispute could spark a major conflict between member states south of Nand and the north over debt consolidation and shortcomings.
The EU chief is expected to come up with a plan for next year. The legislation was suspended due to the epidemic so that governments could boost their economy.
“What we are discussing is how we can create a partnership between the member states to have more legitimate and legitimate laws,” Gentiloni said.
He said that even if the ban was lifted, we would no longer be ‘business as usual’.
“We do not end up with an escape plan and we just go back to where we were and the consequences can be imagined by anyone,” he said.
Despite the growing risks, the EU economy is expected to grow by 5 percent this year, by 4.3 percent next year.
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