A little optimism in the midst of the economic crisis. The president of the European Central Bank, Christine Lagarde, estimated this Friday that the "worst" of the economic crisis caused by the epidemic of coronavirus in the euro zone is "probably past". The Frenchwoman, who spoke in the context of a virtual forum, however insisted that the recovery will be "incomplete" and "uneven" and that she will "transform" the economy.
His optimism contrasts with the somber picture drawn up on Thursday by the International Monetary Fund, which sees in particular the countries of the euro zone suffering a severe recession this year (-10.2%), a direct consequence of the economic paralysis to contain the Covid-19 pandemic which led him to plan his forecasts significantly.
A European summit without agreement?
In Europe, an extraordinary summit bringing together the leaders of the 27 EU countries will take place in Brussels on July 17 and 18 to try to find an agreement on the plan to massively revive the European economy, by providing for the creation of a recovery fund of 750 billion euros financed by massive loans.
"I do not think they will reach an agreement" in mid-July, warned the French, seeing "intense negotiations" begin and a "process to continue". A preparatory meeting is scheduled for Monday in Germany, where Chancellor Angela Merkel will welcome French President Emmanuel Macron near Berlin, for their first reunion since the start of the coronavirus crisis. On the menu of their discussions is notably the future EU budget and the draft recovery plan which was largely initiated by the Franco-German couple.
The tourism sector could change its face
A big obstacle to overcome in the discussions on the EU recovery plan concerns the reluctance of the four so-called “frugal” countries - Netherlands, Austria, Sweden, Denmark - very reserved with regard to this plan which will benefit before all in the countries of the South, the most affected by the pandemic.
But "what is very special is that, for once, monetary and budgetary policies have worked together" to curb the economic impact of the virus, welcomed the former boss of the IMF. At the end of the crisis, the economy will have changed, "airlines, hotels and the leisure sector" developing in a "different format", while "new industries" will emerge, says Christine Lagarde.
Politics
Coronavirus: Understanding everything about the European recovery plan of 500 billion euros from Emmanuel Macron and Angela Merkel
Economy
Coronavirus: Will the economic recovery be as rapid as announced by 2022?
- Covid 19
- Coronavirus
- Economy
- Bce
- Christine Lagarde
- Economic crisis