European Union finance ministers will discuss the impact of coronavirus on Monday, along with measures to restart their economies, as stock markets brace themselves for another tough week.
The move comes as Minister for Finance Paschal Donohoe has said the Government will do all it can to ensure the Irish economy bounces back from the Covid-19 crisis.
US treasury secretary Steven Mnuchin said on Sunday he did not expect a recession due to the spread of coronavirus. But all eyes will be on markets again after they recorded some of the biggest falls in 30 years last week.
Stocks across the globe bounced back on Friday, but hopes of more central bank stimulus and government spending could only so far in counterbalancing days of pandemic-related panic-selling. European companies have lost about €2.7 trillion in value since fears of the economic damage from the coronavirus sparked a worldwide sell-off last month.
Speaking as businesses across multiple sectors warned of cashflow issues and huge job losses, Mr Donohoe said the Government would “work night and day” to look at what measures are needed.
Concerns
“I want to emphasise to all who have concerns about their jobs and their businesses, and where they might be in a number of weeks and months, that we understand those issues,” said Mr Donohoe speaking on RTÉ’s This Week.
“Just as we have the ability to respond back and ensure that our public health will recover from this, we will do all that we can to ensure our economy does the same,” he added.
Acknowledging that the State faces a “great economic challenge”, Mr Donohoe said the Government was continuing to talk with the banks on ways to protect individuals and businesses impacted by the crisis.
His comments came as Fianna Fáil called for the establishment of a business taskforce to advise on the responses required to ensure businesses can survive.
Business group Ibec wrote to Taoiseach Leo Varadkar on Sunday calling for more measures to protect those most affected by the Covid-19 crisis.
“It is inevitable that we will see extensive job layoffs over the coming days and weeks. Many of those losing their incomes will be in lower-paid sectors of the economy and self-employed. Immediate introduction of additional wage subsidies and social welfare measures is required in order to provide a reasonable basic income to all workers impacted by the crisis,” said Ibec chief executive Danny McCoy.
Struggling businesses
The Irish Travel Agents Association (ITAA) became the latest industry body to call for more support for struggling businesses on Sunday. The ITAA has called for a number of measures to protect the sector, which employs over 3,500 people locally.
The Eurogroup of ministers will hold a video conference on Monday with the key topic of discussion expected to be the European Commission plan unveiled on Friday to boost spending on sectors of the economy hit by the coronavirus and to let EU nations run bigger deficits to help cushion businesses.
The commission, which predicted the outbreak would lead to a recession in the EU this year, wants to channel €37 billion of existing EU funds to companies in greatest need and take a lenient approach to state aid rules.
The redirection of these funds, many of them already committed to poorer regions of eastern Europe, needs approval from EU governments and lawmakers. The commission hopes this clearance can come within two weeks.
– Additional reporting: Reuters
