BRUSSELS – The European Union signaled Wednesday that it will not punish member countries for breaking the bloc’s deficit rules to tackle the coronavirus but that it could condition their access to sorely-needed recovery funds on them following its advice on how to manage their budgets.
The 27-nation bloc is forecast to enter “a recession of historic proportions this year” as the coronavirus ravages its economies, with an average drop in output of 7.5%.
Virtually every country has broken the deficit limit of 3% of GDP as they’ve spent to keep health care systems, businesses and jobs alive. “In all cases, apart (from) Bulgaria, we concluded that the deficit criteria of the treaty is not complied with.
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