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ব্যঙ্গাত্মক বর্ণনা এবং ফরেক্সের প্রবেশদ্বার বিন্যাস

European countries to ease stimulus packages as coronavirus wanes

European countries to ease stimulus packages as coronavirus wanes

European countries have started lifting the quarantine restrictions gradually returning to the way of life before the pandemic. Nevertheless, it is too early to talk about the beginning of economic recovery. Besides, some of the EU state members are now considering to halt stimulus packages payoffs as the coronavirus is abating. No matter how strong the economy is, it is unlikely to withstand such a financial burden for long.

The Portuguese authorities are already discussing the plan to stop paying off unemployment benefits. Many economists fear that this may trigger a sharp jump in unemployment. France is struggling to make ends meet but the withdrawal of financial support for the companies and unemployed people could cause a wave of bankruptcies and a rise in the level of unemployment. It will inevitably lead to a sharp drop in consumer spending.  It is well known that when the demand and business activity fall, the recession comes. The UK also cannot afford to pay benefits indefinitely as it will be the doom for the economy. Almost all European countries are now facing this problem. Experts reckon that the euro area will incur the biggest losses in the current quarter.

The European Central Bank has announced quantitative easing worth 1.35 trillion euros, buying up government and corporate bonds. Economists think that the probable high rate of unemployment is the main threat that the eurozone may encounter in the current or the next quarter. Only the future will show whether this gloomy forecast is true.


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