Experts say when the Covid-19 epidemic spread and devastated European Union economies. The eurozone group needs to find a common voice. According to the Guardian, the European region is facing an economic crisis and the risk of division because of the new strain of corona virus.
In early 2020, the US-China trade war cooled, EU production increased sharply in January. Consumer confidence increased sharply. On February 13, the European Commission forecasts that the economy in the bloc will grow steadily despite the warning of a new virus emerging in China.
Brussels expects the new strain of corona virus to reach its peak in the first three months of the year and has a limited impact on the global economy. However, things turned upside down in just a few weeks.
The global economy is in turmoil and facing a recession, the stock market is in freefall. In many countries, the Covid-19 epidemic caused shops, restaurants and bars to close.
EC President Ursula von der Leyen described the Covid-10 epidemic as a major shock to the European economy. She said the EU will raise at least 37 billion euros to fight the disease.
Italy is currently the most affected country in Europe. Professor Lorenzo Codogno of London School of Economics predicts Italian production will decline by 3.1 to 6.5 percent.
The Italian government said it is willing to spend 25 billion euros to protect the economy. Experts say that Italian banks are now in much better health than 2011. However, they still face many risks. Professor Codogno believes that the EU needs to support a certain credit line for Italy.
In France, the government also warned of serious consequences for the economy. The French central bank cut its growth forecast for the first quarter to 0.1 percent.
Germany is not as heavily influenced by the Covid-19 epidemic as Italy and France. But its exports are also reeling from paralysis in China.
Therefore, it is likely that the German economy with production power will recover quickly compared to countries dependent on tourism. However, economist Odendahl says that should not prevent European policymakers from taking drastic action.
French MP Pascal Canfin called for Europe to adopt an economic stimulus package at a summit of EU leaders. He said most likely ministers would agree with measures such as securing capital for businesses. They increase unemployment benefits and reduce working hours for workers.