Coronavirus made Europe recall the 2008 financial crisis


The COVID-19 pandemic will hit the European economy very seriously. The consequences of the epidemic may be even more serious than the financial crisis of 2008-2009. About what to do to European countries, writes the German edition of Die Zeit.


On April 7, the finance ministers of the EU member states gathered in Brussels. They are discussing the coordination of an emergency assistance program, the size of which is unprecedented for non-war time - 3% of the GDP of the entire European Union. In addition, the heads of financial departments agree on liquidity guarantees in the amount of 18% of the EU Air Force, as well as the opening of credit lines of the European Stability Mechanism in the amount of 2% of the EU GDP.

Nevertheless, the position of European states in assessing the proposed measures to combat the consequences of the pandemic is not uniform. Now there are two poles. On one - Germany, Austria, the Netherlands, on the other - Italy and Spain, as well as France. Of course, everyone in the EU understands that the 2020 economic crisis is of a pan-European nature. Therefore, they compare it with the events of 2008-2009. Then the EU helped “lagging behind” Greece and a number of other countries to protect the entire euro area from collapse. The European stability mechanism provided Greece with the necessary loans, but at the same time, a special commission began to observe the policies of the Greek government.

It is clear that in southern Europe such measures as monitoring the economies of southern European countries are considered humiliating. The initiators of the observation are more prosperous countries for which the consequences of the crisis are not so tangible. Naturally, in the same Germany they again asked the question: why should the Germans pay the debt of Italy if the German government cannot control the financial and economic policies of this country?

Now in Germany, the Netherlands and a number of other countries they are rather skeptical about the idea of ​​providing financial assistance to the states of Southern Europe. In particular, France’s proposal to create a special fund is criticized in which funds could be accumulated to overcome the consequences of the crisis.

In turn, Italian nationalist politicians argue: Germany specifically uses the crisis caused by the coronavirus pandemic to bring Italy to its knees and expropriate its economy. At the same time, it is obvious that without assistance, the countries of Southern Europe, the hardest hit by the coronavirus, will have to be very tight.

German Finance Minister Olaf Scholz and German Foreign Minister Heiko Maas said they would act in concert with Italy and other affected countries. They did not talk about issuing bonds, but emphasized that the European Stability Mechanism is able to quickly provide loans to Italy and several other countries.

The reaction to the disagreements of the Europeans themselves is interesting.
Either Germany is finally becoming rational and we are strengthening the EU through shared responsibility, or everything will be very bad. The end of the European Union would be most destructive for Germany,

- Someone thinks SilentBob.

But many Germans, on the contrary, criticize the possible assistance to the countries of Southern Europe. They believe that the burden of assistance to southern European countries will fall on the shoulders of ordinary taxpayers and that it would be more reasonable for Germany to help its citizens, and not Italy.

Germany is not to blame for the ruined Italian health care system. In particular, in recent years, Italy has taken huge debts, but not for improving the Italian health care system, but for gifts in the elections. The German state consists of 82 million citizens who carry a relatively high tax and duty burden. So, if we want to be responsible for Italy, we can also gladly reduce the retirement age again, pay social insurance contributions from tax resources and pay everyone basic income,

- writes another commentator.

It seems that the pandemic will not only entail a worsening of the socio-economic situation in Europe. The unity of the European Union as a supranational union, the future of political and economic relations between the EU countries are at stake.
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  1. x.andvlad April 7 2020 15: 30 New
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    Their unity will really be achieved when they independently begin to lift sanctions from other states that the States imposed on them. But this is unlikely to happen. The United States will then be very offended.
    1. Sergey39 April 7 2020 15: 48 New
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      Somehow they are small. They should remember the period after the Second World War.
    2. Mebius April 7 2020 15: 49 New
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      Quote: x.andvlad
      Their unity will really be achieved when they independently begin to lift sanctions from other states that the States imposed on them.

      I remember the crisis of 2008, as it passed unnoticed for Russia, although the protesters squealed right up to the vomit in the swamp .. (failed)
      Now the EU and the US are screaming and masks are stealing from each other)))
      Here it is the unity of the "civilized world" ..
      But in Russia everything is as usual, who needs help, we will help, but no, we have enough of our problems! We will not impose .. hi
      1. Kronos April 7 2020 16: 19 New
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        Why lie the crisis and Russia has passed - the growth of the ruble exchange rate and with them prices, the ruin of part of small business and firms. This is about 20008 now
        1. yustas April 7 2020 19: 47 New
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          Well, do not lie, what prices have risen? Prices of medium and small businesses, yes, because they are trying to make money in the wake of the crisis. You tell me more about toilet paper and milk with buckwheat. In Siberia, everything is calm, there are products, everything is there, except for the notorious disposable masks, which in fact give nothing. And in normal pharmacies and stores prices have not risen. People who are sitting on a gray sn bar will even pay a minimum wage (although this is still an occasion, you should understand that it’s bad for us) Although I do not pretend to be adequate governors throughout Russia, there’s no need to panic!
          1. Kronos April 7 2020 19: 49 New
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            Suppliers warned of a rise in price of products up to 20% due to a pandemic

            Read more at RBC:
            https://www.rbc.ru/rbcfreenews/5e8bf6d69a794744ecaed452
            This is just an example.
        2. yustas April 7 2020 19: 50 New
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          I agree and I will not deny that the crisis hit us, but I hate stupidity and panic, as well as the people who breed it and cut it!
          1. Kronos April 7 2020 19: 52 New
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            What kind of panic is not clear to me. I voiced the fact that the situation in the economy will worsen dramatically because along with price increases there is still a reduction in wages and the dismissal of workers because many months of quarantine will ruin
      2. Lelek April 7 2020 17: 33 New
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        Quote: Mobius
        Here it is the unity of the "civilized world"

        hi
        In form, it (unity) still somehow exists, and in content, each of the members of this club pulls a tablecloth with grub on itself. Whether this ends in collapse or the mind will triumph will see in the near future.
  2. Varyag_0711 April 7 2020 15: 31 New
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    It seems that the pandemic will not only entail a worsening of the socio-economic situation in Europe. The unity of the European Union as a supranational union, the future of political and economic relations between the EU countries are at stake.
    If this bureaucratic crap falls apart, then the whole world will only get better and, first of all, Europe itself.
    Correctly, Italians say that this is not a union, but a bunch of hyenas, or something like that, I can not vouch for the accuracy of the phrase. But the fact that this virus showed a price to this so-called alliance is for sure. As a result, as always, they call for Russian help. The truth about the help will be forgotten very soon and they will not give a damn again, they have such a mean nature in the West.
    1. Overlock April 7 2020 17: 18 New
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      Quote: Varyag_0711
      Right Italians say that this is not a union, but a bunch of hyenas

      but how could it be if some worked, and the rest skimmed the cream? Take Poland tighter, by the way, what contribution has it made to the EU?
  3. A. Privalov April 7 2020 15: 32 New
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    Apparently, it will be lousy everywhere. At least in Europe, at least in Dundrovka. Perhaps little will not seem to anyone.
    1. Tatyana April 7 2020 16: 33 New
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      Quote: A. Privalov
      Apparently, it will be lousy everywhere. At least in Europe, at least in Dundrovka. Perhaps little will not seem to anyone.

      However, at the same time US crawl out of crisis at the expense of other countries, because the US Federal Reserve is a monopoly in the global financial market issuing its bills - with its "financial goods" - with its $$$.
      These dollar bills are in the world financial market exactly the American “product” that is sold and bought in all countries and can be printed by the US Federal Reserve in unlimited quantities.
      Therefore - precisely in connection with this market-financial-pseudo-commodity phenomenon - in the United States itself, in fact, inflation cannot and cannot be possible, since all the extra $$$ for the inside of the United States is being bought up by other states.
      In such circumstances, US foreign debt can be enormous and exist indefinitely.
      The main thing for the USA is that it would be something for them to buy in other countries.

      So worry about the crisis in the US itself is not worth it!
      1. Overlock April 7 2020 17: 19 New
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        Quote: Tatiana
        So worry about the crisis in the US itself is not worth it!

        without a doubt! You need to think about yourself and your country, not about Europe
      2. A. Privalov April 7 2020 19: 04 New
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        Quote: Tatiana
        The US Federal Reserve is a monopoly in the global financial market issuing its bills - with its "financial goods" - with its $$$.

        You are absolutely right. The United States issues dollars completely monopoly. Like Russia issues its rubles, Mongolia - the Mongolian Tugriks, and Japan, respectively, the tribal yen. Does anyone find this situation strange?

        Quote: Tatiana
        These dollar bills are in the world financial market exactly the American "commodity", which is sold and bought in all countries ...

        And here, you are right again! Since the dollar is the generally recognized national currency in the world, it is accumulated by the central banks of other countries in their foreign exchange reserves. For example, the Russian Federation on March 20.03.2020, 551,2 had 487 billion US dollars available. (A year ago there were only 45. An increase of XNUMX billion.)
        And he does it not for fun, but as a reserve in case of financial crises. That is what should be done.

        Quote: Tatiana
        ... and can be printed by the US Federal Reserve in unlimited quantities ...

        For the sake of fairness, it should be noted that the issuing country of the reserve currency certainly has certain advantages: the ability to cover the balance of payments deficit with the national currency (what is happening now with the US trade balance), to help strengthen the position of national corporations in the global competition. etc. But the promotion of currency on the role of the reserve entrusts the issuing country with the obligation to maintain the stability of the currency. In other words, there can be no talk of any "unlimited quantities." Its quantity is exactly the amount that anyone who wants this currency can buy up without any restrictions. If dollars, as you say, were printed in unlimited quantities, they would have to become cheaper. However, you can see with your own eyes that everything is in order with the dollar and it is only becoming more expensive, as the Russians bought a dollar a year ago for 65 rubles, and today it is almost 80.
        As you know, Russians keep at least $ 45 billion under their pillows, which is 3,6 trillion rubles. (At the same time, I'm not talking about the oligarchs and other cellists hiding their dollars in foreign banks and offshore.)

        Do not forget about about 10 billion dollars for which the Central Bank of the Russian Federation (read, your own native government) permanently buys and sells state securities, which you hate so much monopolists.
        And rightly, by the way, does.
        Why? Your money will be more whole. They will be preserved in the best possible way, and even they will give a steady profit. The yield on US securities is relatively low - 1,56% per annum for ten-year obligations (as of February 19, 2020). But these are reliable securities with a low probability of default, which can always be sold on the open market at current prices without serious losses. Rest assured. It will not be so easy to pull them away.

        Quote: Tatiana
        ... in the USA itself, in fact, there is no and is not possible to be inflation ...

        Here, I have to make you happy. The inflation rate in the USA for 12 months is 2,28%.
        60-month inflation (5 years): 9,44%
        120-month inflation (10 years): 19,00%

        One of the indicators of a strong economy is a stable and expensive currency, for which there is a demand not only within the country, but also from other states buying it. Yes, the US dollar is not the best thing in the world, but the most popular currency in the world. The economy of the issuing country of this currency is diversified and quite stable (it can withstand even financial crises, we hope that this “coronovirus” can withstand) and therefore, it is the dollar that is the world's reserve currency.
        The collapse of this currency will lead to innumerable disasters in the global economy, to the immediate collapse of the governments of dozens of countries, to the most bloody civil wars on all continents, including ... (but don’t bring Gd!). We wish the American dollar good health and many years of a quiet life for the joy of all who hold it. hi
        1. Tatyana April 7 2020 19: 23 New
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          Quote: A. Privalov
          In other words, there can be no talk of any "unlimited quantities." Its quantity is exactly the amount that anyone who wants this currency can buy up without any restrictions. If dollars, as you say, were printed in unlimited quantities, they would have to become cheaper. However, you can see with your own eyes that everything is in order with the dollar and it is only becoming more expensive, as the Russians bought a dollar a year ago for 65 rubles, and today it is almost 80.

          Well, speaking of printing $$$ in an "unlimited" amount, I just did not begin to paint it in detail. "Unlimited" - I had in mind as much as they constantly need and constantly throughout in time.
          Quote: A. Privalov
          Here, I have to make you happy.
          - The inflation rate in the USA for 12 months is 2,28%.
          - Inflation rate for 60 months (5 years): 9,44%
          - Inflation rate for 120 months (10 years): 19,00%
          I believe that this level of US domestic inflation also does not bother. For something, my friends living in the USA never complained to me about inflation in the USA at all.

          Thank you for the detailed information! yes
          1. A. Privalov April 7 2020 19: 46 New
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            You're welcome! hi
  4. pytar April 7 2020 15: 37 New
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    Although there are disagreements in the European Union over the methods and distribution of funds to counter the crisis, all countries realized that it would be much more difficult for them to recover alone! The EU has the resources to deal with the situation! The question is how productively they will be used and what conclusions will be made so that the EU itself becomes more efficient in the future!
    1. Varyag_0711 April 7 2020 16: 04 New
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      I am amazed at you, by golly. The EU has you as it wants, but you continue to sacredly believe that they will help you? They did not help Italy, do you really think that Bulgaria is a more valuable country for them than Italy? You are either very naive or very stupid. The EU has stripped you of everything, where is the AU built under the USSR? No, they destroyed it thanks to the insistence from Brussels, and now they are forced to buy electricity from the EU at higher prices. Where is your agriculture? In deep opera? Where is your famous leche of no less famous bell pepper?
      Further, I don’t even see the point. From an industrialized country, you have turned into an appendage of the EU, well, rejoice further and hope that you may get crumbs from the EU table.
      1. Evil543 April 7 2020 16: 32 New
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        There was a Hungarian medication, a globe, and Bulgarian ketchup. Oh time ...
      2. pytar April 7 2020 16: 55 New
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        I am amazed at you, by golly ... You are either very naive or very stupid.

        And here I am amazed when people immediately go to name-calling, if something differs in their ideas! I do not want to enter into disputes, I will write only on the merits:
        and you continue to sacredly believe that they will help you?

        Specifically, Bulgaria has already allocated 1,4 billion euros from euro funds. Of these, 812 million are free of charge. The total economic package for Bulgaria is 2,25 billion euros.
        The EU has stripped you of everything ...

        BG GDP for 2019 is 52 billion euros. The crisis will have an impact, but it is so all over the world. The EU membership approval level is 62%, against only 20%.
        ... where is the AU built back in the USSR?

        Yes it works! Here on 26.03. 2020 Rosatom won a tender for the modernization of neutron flux monitoring equipment at the Kozloduy NPP. At the construction of the new Belene NPP, there is a tender in the moment.
        Where is your agriculture? In deep opera?

        In 2019, agricultural exports brought 5 billion euros! Bulgaria has become one of the world leaders in the export of grain and oilseeds.
        From an industrialized country you have become an appendage of the EU

        In 2019, Bulgaria took the 5th place in the EU in terms of GDP growth (3,5-3,8% successively 10 years) and is in the top 3 in terms of low external debt. Industry generates 24-28% of GDP, for example, only one sector of electrical engineering and electronics in 2019 brought 3,5 billion euros.
        Further, I don’t even see the point.

        You have a very vague idea of ​​the situation. There really is no point in discussing something with you.
    2. Andrea April 7 2020 16: 17 New
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      Everything that does not kill makes you stronger, definitely.
      Question, will it survive? Non-pandemic problems have begun.
  5. rocket757 April 7 2020 15: 45 New
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    Such a cataclysm must be experienced, but who and how will survive it, we will soon see.
  6. knn54 April 7 2020 15: 53 New
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    ALL "Charms", "Good", "Comfort" of globalization are destroyed by the coronavirus.
  7. APASUS April 7 2020 15: 59 New
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    Who would doubt that strong economies are using this epidemic to redistribute the market. The next economic era and no allied commitments are taking place now, they are no longer important. This is shown to you by the Americans, though openly. It is only the Balts, Poles, Georgians who believe in the promises of a big brother !!
    1. tihonmarine April 7 2020 16: 24 New
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      Quote: APASUS
      It is only the Balts, Poles, Georgians who believe in the promises of a big brother !!

      Georgians forgot their old joke "Givi, you promised to buy shoes for me. Yes, you promised, but then my heart was soft, and now my heart is solid."
  8. Fedorov April 7 2020 15: 59 New
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    Do not care for economists, everyone thinks that the wobblers are human people, let them shine and the wabble us earn them.
  9. Andrea April 7 2020 16: 13 New
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    Gloating is not the best quality, but it somehow increases dopamine.
    So the true mug of the West has pecked out with its "valuables" that have gotten sore. Well, where are these "values"?
  10. tihonmarine April 7 2020 16: 21 New
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    Either Germany is finally becoming rational and we are strengthening the EU through shared responsibility, or everything will be very bad. The end of the European Union would be most destructive for Germany,
    Germany, just became rational, she realized that, "Her shirt is closer to the body. And you cannot warm everyone with your warmth." And as Germany used to do without Europe, Europe doesn’t.
  11. Thrifty April 7 2020 16: 35 New
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    Germany needs to withdraw US troops from its territory and leave the European Union!
  12. orionvitt April 7 2020 16: 47 New
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    a pandemic will not only entail a worsening of the socio-economic situation in Europe
    Two months about this tryndy from each iron, and then realized. laughing Yes, in general, the point is not a pandemic, just capitalism, cannot exist without crises. Well, otmazyvatsya as it should, we were told in all ears that there is nothing better in the world than capitalism. laughing
  13. Lamata April 7 2020 17: 27 New
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    What is this Union !!! Well, what kind of union, where, sorry, I don’t say a compliment to the woman, but you can’t give a nickname to the snout, or kick the churek there.
  14. Ros 56 April 7 2020 17: 43 New
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    What kind of fashion to guess like a daisy, is it rain, is it snow, is it going to be, is it not. We wait and see, then we will draw conclusions.
  15. Cowbra April 7 2020 20: 20 New
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    very correctly noticed: