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The economic remedies for the coronavirus

Video Credit: Reuters Studio - Duration: 02:23s - Published
The economic remedies for the coronavirus

The economic remedies for the coronavirus

Leaders and policymakers have been forced to act as the coronavirus sparks economic panic.

These are some of the key measures being taken.

Megan Revell reports.

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The economic remedies for the coronavirus

(SOUNDBITE) (English) UNITED STATES PRESIDENT DONALD TRUMP, SAYING: "$50 billion" (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING: "€25 billion" (SOUNDBITE) (English) CANADIAN PRIME MINSTER JUSTIN TRUDEAU SAYING: "a billion dollar COVID-19 response fund." This is how some of the world's biggest economies are responding as COVID-19 sparks panic.

United States (SOUNDBITE) (English) UNITED STATES PRESIDENT DONALD TRUMP, SAYING: "This is not a financial crisis." President Donald Trump signed an $8.3 billion emergency spending bill, greenlit low-interest loans to vulnerable businesses, and deferred tax payments without interest or penalties for those affected.

(SOUNDBITE) (English) UNITED STATES PRESIDENT DONALD TRUMP, SAYING: "This action will provide more than two hundred billion dollars of additional liquidity to the economy." Payroll tax cuts and paid sick leave for gig workers were mooted.

The Federal Reserve cut interest rates by half a percentage point, its first emergency rate move since the 2008 financial crisis.

China (SOUNDBITE) (Mandarin) CHINA CENTRAL BANK VICE GOVERNOR LIU GUOQIANG, SAYING: "We will provide strong monetary policy support to fight against the epidemic and promote the development of the real economy." China has earmarked the equivalent of $15.9 billion, ramping up support for virus-hit regions.

The central bank has cut several of its key rates, and urged banks to give cheap loans and payment relief to exposed companies.

European Union The EU Commission will set up an investment fund, with firepower of €25 billion from existing resources, to cushion the blow to vulnerable sectors.

(SOUNDBITE) (French) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING: "We will use all the tools at our disposal so that our economy resists this storm." Germany In the case of Germany, the EU's largest economy, some officials say it could release 50 billion euros without ditching the government's policy of no new debt.

(SOUNDBITE) (German) GERMAN CHANCELLOR, ANGELA MERKEL, SAYING: "Luciky, Germany is in a relatively robust situation." The coalition agreed to increase public investments by €12.4 billion by 2024, and to make it easier for companies to claim subsidies to support workers on reduced working hours.

Italy Italy has been the hardest hit EU country and is raising spending to counter the crisis.

Prime Minister Giuseppe Conte optimistically estimated just €7.5 billion would be needed.

Just a week later, that was upped quite considerably.

(SOUNDBITE) (Italian) ITALIAN PRIME MINISTER, GIUSEPPE CONTE, SAYING: "€25 billion." That means Italy's 2020 budget deficit looks certain to climb above 3% of national output, a ceiling set by EU rules.



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