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The European economy is most affected by coronavirus

[vc_row][vc_column][vc_paragraph text=”Luis de Guindos, vice-president of the European Central Bank, stated in his interview that Europe will likely meet the worst consequences of the pandemic.“][/vc_column][/vc_row][vc_row][vc_column][vc_heading title=”Old Europe will take the fall” size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”At the time when governments continue to encourage people to stay at home and avoid visiting public places, offices and traveling. But such measures have negative spillover effects, and the macroeconomic indicators are crucially falling.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”But how significant is the pandemic’s impact on the global economy? “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”While famous economist Nuriel Roubini forecasts the huge economic recession, Luis de Guindos considers that the effects would be a true catastrophe for Europeans and not so fateful for the outside world.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”According to him, the EU will suffer most and will have the longest recession period.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The three leading touristic centres – France, Italy and Spain – are most affected by COVID-19 and the biggest number of victims, and there are some regions like Britain who still haven’t met the pandemic peak.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Thus, in conditions of economic fluctuations and the attempts to stop the disease spread being made by governments, the European Central Bank announces the 6% contraction of French economy noticed over the first quarter. In the next few months it may increase to 10%.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The permanent reduction in GDP may be predicted only after the removal of restrictions. In a conversation with Spanish news agency La Vanguardia”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”The ECB vice-president confirmed that each month of economic constraints would lead to 2-3% decline. This means that month and a half of quarantine will reduce the economic indicators by 5% while three moths of restrictions will double this number.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”“Despite there is a small possibility of restoring in the third quarter of 2020 the recession is likely to last till 2021. Only then we’ll be able to speak about the recover. Still not all the losses can be compensated”.”][/vc_column][/vc_row][vc_row][vc_column][vc_heading title=”“Now we are better prepared”” size=”medium”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Meanwhile, European Central Bank has made multimillion cash injection to the European economy in order to support the financial and monetary systems of the region and help it to deal with the consequences of the pandemic. Also, the ECB has offered over $800 million for purchasing government debt and private securities.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Furthermore, the colossal money printing will provide banks with enough credit to prevent the enterprises’ bankruptcy and help the households to achieve the regional goals.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”According to Guindos, this “recovery plan” will prepare Europe for the coming crisis.”][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”Then he underlined that the Europe’s level of debt is stable and causes no concern, “We are sure that the economy will manage it and recover by the beginning of “][/vc_column][/vc_row][vc_row][vc_column][vc_paragraph text=”the next year”, said vice-president.”][/vc_column][/vc_row]