Terry Bretton, the European Union’s industry commissioner, said yesterday that the bloc is heading towards an economic contraction of 5-10% this year due to the outbreak of the new Corona virus, adding that the number may be worse if “things do not improve”.
In an interview with France 2 TV, he also said he was optimistic that EU leaders would eventually be able to elaborate the details of a trillion euro emergency fund that was agreed on yesterday.
In the European Union, Bretton said, we are heading towards (stagnation) between 5 to 10%, which means that it is about 7.5%. But today, if things do not improve and if we witness a second peak (for an outbreak), things may get worse.
Speed of recovery
“Everything depends on the speed of the economic recovery,” he added. We are still in the midst of the pandemic and we will learn to live with her for several months. ”
Europe faces the worst economic shock since the Second World War from the spread of (Covid 19), the respiratory illness caused by the Corona virus, which led to the closure of borders across the bloc and left member states struggling to obtain medical supplies.
Finding ways to support the economy has reopened bitter divisions between the wealthiest countries in the federation, located in the north, and the union members overlooking the Mediterranean, who are also hardest hit by the pandemic.
But Bretton said the sums needed to relaunch economic activity were huge, so everyone would end up agreeing to the details.