BRUSSELS, March 2(Reuters)- The European Union is considering measures to protect its economic climate from a new outbreak of coronavirus, raising its health risk level to "high" after it spread to most European Union countries, senior officials said on Monday.
FILE PHOTO: Euro note shown by the German Central Bank in Frankfurt, Germany, March 2017. REUTERS/Kai Pfaffenbach
About 2,100 new cases of coronavirus have been diagnosed in 18 of the EU`s 27 countries, including 38 cases of death, according to data released on Monday by the EU`s executive committee.
The sudden spread of the epidemic in europe since mid-february has prompted eu countries to coordinate their economic and health responses. Previously, the epidemic was mainly concentrated in China.
Paolo Gentiloni, EU economic affairs commissioner and former Italian prime minister, told a news conference:" The EU is ready to use all available policy options to protect our growth if necessary. He said the risk of the epidemic had now become a reality.
He ranked transport, tourism and carmakers as the most affected industries.
Luis de Guindos, vice president of the European Central Bank, said central banks were also prepared to provide support, but governments should be the first line of defence.
"Fiscal policy should be the main instrument for dealing with this situation," said DeGindos. And take care. "
One on Wednesday In particular On the conference call, eu finance ministers will discuss taking immediate action at the national level to reduce the risk of an economic crisis, mr zhentilony said.
He said government could "support the health care system, provide guarantee for companies to obtain liquidity, and perhaps pay their businesses in stages to deal with the risk of unemployment ".
The conference call will also prepare for a possible "coordinated financial response" that European finance ministers will decide in March. Mr. zhentilony says this may involve unconventional measures similar to those taken to combat the 2008 global financial crisis, but he has not given more details.
Subsequently, the EU announced some temporary exceptions to its state subsidy provisions, allowing member states to support their economics more freely.
In february, the european union`s economic engine, germany, abandoned its consistent opposition to increased investment at the eurozone level as concerns grew over the economic slowdown.
Mr zhentilony praised italy`s government`s decision to take steps to help economic weather the epidemic, the most severely affected europe, as a further indication of the eu`s more generous approach to fiscal policy.
He called the package of 3.6 billion euros ($3.5 billion) announced Sunday by Roberto Gualtieri, the finance minister of Italy`s economics," appropriate," although it would further drive up Italy`s budget deficit.
** Health, border**
At the same press conference, the European Commission`s president, Ursula von der Leyen, said the European Centre for Disease Control and Prevention (CDC) had elevated the risk assessment of the new crown epidemic from "medium" to "high ".
"In other words, the epidemic continues to spread," she told Journalist.
To coordinate the EU`s response to the epidemic, the EU health minister will be held in Brussels on Friday In particular meeting, this is the second time this year to discuss how to solve the crisis of the new crown epidemic.
One EU official said the health minister meeting could be particularly likely with EU migrants The meeting was held simultaneously.
So far, eu experts have agreed that denying suspected virus-infected people entry could help spread the epidemic, but they will assess the position weekly.
Closing the border between members of the Schengen area on health-security grounds would be unprecedented.
Speaking in london, mr dekindos said china`s measures to combat the epidemic could affect euro-zone exports and could disrupt global supply chains. Services could also be affected, he added, and especially affected by the sharp decline in travel.
Asked about the possibility of a ECB rate cut, his position echoed the view of other central bank rate-setters that it was too early for central banks to act.
"Let`s not make a mistake," he said. We`re not almighty. We don`t have a magic stone. However, he added, the ECB was discussing any possible coordinated action with other central banks. (end)
