In reference with the enormous consequences of the Corona crisis on economy the EU is checking the activation possibilities of the EU assistance agency ESM. ESM was established in 2012 in order to support countries such as Greece against bankruptcy and has in this moment at disposal – considering the given loans – the amount of more than 410 billions Euros.
According to the statement of the Eurogroup’s President Mario Centeno the possibility of the approval of the ESM funds is already actual. They would be used primarily for covering medical costs and the economic damage connected with them.
In addition the discussion is to be led also about the »Corona bonds», which were demanded by Italy and at the same time rejected by Germany. The bonds would mean a mutual indebtedness of all EU countries. In order to ease the economic consequences of the Corona crisis, the EU Commission has already temporary cancelled the European regulations about deficit and indebtment targets and softened the rules for governemental supports. Nevertheless, highly indebted countries such as Italy could face difficulties, if they still had to increase their debts in this crisis.
