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  • Businesses reopen in Segria, Catalonia, Spain, July 6, 2020.

    Businesses reopen in Segria, Catalonia, Spain, July 6, 2020. | Photo: EFE

Published 7 July 2020
Opinion

Gentiloni warned that measures to counteract the economic effects of the pandemic are still insufficient.

The European Commission (EC) confirmed that the COVID-19 pandemic will generate an 8.7 percent drop in the Eurozone, which is the monetary union of 19 of the 27 European Union (EU) member states that have adopted the euro as their common currency.

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The EU economy, however, will only experience a drop of 8.3 percent in 2020, with a limited rebound of 5.8 percent in 2021. 

These forecasts worsen the Commission's estimates made in the spring when the EC considered that the euro currency would fall by only 7.7 percent.  

The EU countries with the main economic impact will be Italy, with an estimated decline of 11.2 percent, Spain (10.9 percent), and France (10.6 percent).

"The pandemic is not over yet. Although the EU has taken measures to cushion its economic impact, these are still insufficient," Europe Economy commissioner Paolo Gentiloni warned.

Reaching an agreement on the recovery plan proposed by the Commission is essential to containing the economic downturn.

"The Plan would equip member states with support tools for a sustainable recovery. It will be the only way to regain confidence in a prosperous future," Gentiloni said.

In 2020's first quarter, EU countries were forced to paralyze their economic activities to prevent the COVID-19 spread.

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