European Union response to corona-virus – GNP
European Union leaders struggled to build a unified response to the corona-virus epidemic that has hardly hit Italy and Spain objected that draft economic plan was too weak.
As the global outbreak first took hold, member states privileged nations responses by shutting borders, hoarding medical supplies and waving through major spending plans regardless of EU rules.
On 19 march, commission adopted a temporary framework for state amid measures to support the economy in the current corona-virus outbreak. 5 types of member state aid measures covered in the framework:
- Direct grants,selective tax advantages and repayable advances.
- State guarantees for loans.
- Subsidized public loans to companies
- Safeguard for banks that channel state aid to the real economy
- Short-term export credit insurance.
So far, 27 national measures were adopted under the temporary framework and 3 approved under article 107 (2)b.
EU showing its cooperation and unity through these hard times by choosing common response.