EU plans to set up a 750 billion euro recovery fund
European Commission Chairman Von Delaine announced that the European Union plans to set up a recovery fund of 750 billion euros to support the European economy after the COVID-19 crisis. According to Bloomberg, the 500 billion euros in the fund will be distributed to member countries in the form of aid, and the remaining 250 billion euros will be used for loans. Italy and Spain will receive assistance with loans totalling more than 310 billion euros, the largest of the 27 member states. If the news is true, it can be used as a symbol of the reunification of the EU countries.
U.S. economic activity declines sharply from early April to mid-May
The U.S. Federal Reserve issued a regional economic report known as the “Beige Book,” showing that economic activity in all subregions generally declined sharply from early April to mid-May. Affected by social distance and confinement measures, overall employment has decreased significantly, but the bigger problem is that many unemployed people are unwilling to re-enter the labour market in the face of uncertain factors in the epidemic. As for the business sector, the outlook is still pessimistic. Although some industries have shown signs of improvement, and companies also believe that after relaxing social restrictions, economic activity is expected to rebound, but due to the high degree of uncertainty, there is no belief that the economy will recover quickly.
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