{
  "title": "Europe’s COVID-19 Crisis and the Fund’s Response",
  "publication": "IMF Blog, March 30, 2020",
  "sourceUrl": "https://www.imf.org/en/blogs/articles/2020/03/30/blog-europe-covid-19-crisis-and-the-fund-response",
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  "summary": "Author: Poul M. Thomsen",
  "sections": [
    {
      "heading": "Overview",
      "content": "- Author: Poul M. Thomsen\n- Date: March 30, 2020\n- COVID-19 has struck Europe with \"stunning ferocity.\" The economic impact is described as severe and a \"deep European recession this year is a foregone conclusion.\""
    },
    {
      "heading": "Economic impact and key statistics",
      "content": "- Nonessential services closed by government decree account for about one-third of output.\n- Each month these sectors remain closed translates into a 3 percent drop in annual GDP.\n- The IMF reports that more than 70 other member countries throughout the world have already sought access to rapidly-disbursing, low-conditionality IMF emergency facilities.\n- Most of the nine non-EU emerging economies in Central and Eastern Europe have already applied for emergency assistance.\n- A $50 billion pool is available via the IMF’s rapid financial support facilities.\n- The IMF has 189 countries worldwide as shareholders."
    },
    {
      "heading": "Analysis of country groups and constraints",
      "content": "- The analysis distinguishes three sets of countries with differing policy space and constraints:\n  - Advanced European economies:\n    - Have substantial policy space and institutions.\n    - Implemented large monetary and fiscal expansions.\n    - Fiscal rules and limits are being suspended to enable large-scale emergency support.\n    - Central banks launched massive programs for asset purchases.\n    - Financial regulators eased requirements to allow banks to support customers and the economy.\n    - In the Euro Area, large-scale interventions by the European Central Bank and calls for the European Stability Mechanism to provide a European supplement to national fiscal efforts are highlighted as critical for countries with high public debt.\n  - Emerging-market economies that are EU members but not in the Euro Area:\n    - Do not have the same policy space as advanced economies.\n    - Will benefit from having reduced fiscal and external deficits and debt in recent years, and from strengthened bank systems.\n    - Substantial effort has gone into building buffers, which now should be used.\n  - Non-EU emerging economies, especially smaller emerging markets:\n    - Fiscal space varies notably within this group.\n    - Lack depth of financial markets and EU linkages that contribute to policy space.\n    - Limited access to external capital and smaller and less developed banking systems hinder ability to finance large increases in fiscal deficits.\n    - Lack the degree of potential access to financial support and policy/institutional credibility that accompanies EU membership."
    },
    {
      "heading": "Policy recommendations and institutional response",
      "content": "- All countries in Europe should respond aggressively, with actions that are bold and commensurate to the crisis scale.\n- Use of available buffers and policy space is urged.\n- Countries are responding in innovative and unfamiliar ways and can learn from each other; the IMF has established a website to provide information on how individual countries are dealing with practical problems and to help distil emerging international best practice.\n- The IMF is dramatically streamlining internal rules and procedures to respond with the speed, agility, and scale required.\n- The Fund stands ready to play its role in supporting Europe’s efforts to fight the pandemic.\n\nPoul M. Thomsen, March 30, 2020\n\n---\n\n Content in this bundle\n\n- La crisi COVID-19 in Europa e la risposta del Fondo Monetario\n  - La crisi COVID-19 in Europa e la risposta del Fondo Monetario (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - La crisi COVID-19 in Europa e la risposta del Fondo Monetario (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\n References\n\n- عربي\n- 日本語\n- Português\n- website\n- The IMF and COVID-19\n\nSource: https://www.imf.org/en/blogs/articles/2020/03/30/blog-europe-covid-19-crisis-and-the-fund-response"
    }
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    "Authors: Poul M Thomsen",
    "Published: March 30, 2020",
    "Author: Poul M. Thomsen",
    "Date: March 30, 2020",
    "COVID-19 has struck Europe with \"stunning ferocity.\" The economic impact is described as severe and a \"deep European recession this year is a foregone conclusion.\"",
    "Nonessential services closed by government decree account for about one-third of output.",
    "Each month these sectors remain closed translates into a 3 percent drop in annual GDP.",
    "The IMF reports that more than 70 other member countries throughout the world have already sought access to rapidly-disbursing, low-conditionality IMF emergency facilities.",
    "Most of the nine non-EU emerging economies in Central and Eastern Europe have already applied for emergency assistance.",
    "A $50 billion pool is available via the IMF’s rapid financial support facilities.",
    "The IMF has 189 countries worldwide as shareholders.",
    "The analysis distinguishes three sets of countries with differing policy space and constraints:",
    "All countries in Europe should respond aggressively, with actions that are bold and commensurate to the crisis scale.",
    "Use of available buffers and policy space is urged.",
    "Countries are responding in innovative and unfamiliar ways and can learn from each other; the IMF has established a website to provide information on how individual countries are dealing with practical problems and to help distil emerging international best practice.",
    "The IMF is dramatically streamlining internal rules and procedures to respond with the speed, agility, and scale required.",
    "The Fund stands ready to play its role in supporting Europe’s efforts to fight the pandemic.",
    "**La crisi COVID-19 in Europa e la risposta del Fondo Monetario**",
    "[عربي](https://www.imf.org/ar/News/Articles/2020/03/30/blog-europe-covid-19-crisis-and-the-fund-response)",
    "[日本語](https://www.imf.org/ja/News/Articles/2020/03/30/blog-europe-covid-19-crisis-and-the-fund-response)",
    "[Português](http://www.imf.org/pt/News/Articles/2020/03/30/blog-europe-covid-19-crisis-and-the-fund-response?sc_mode=1)",
    "[website](https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19)",
    "[The IMF and COVID-19](https://www.imf.org/en/Topics/imf-and-covid19)"
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