what other things can the european investment bank offer europe on its own without help from the europeanentral bank institutions? >> of course, we could expand the program we have just proposed. the 20 billion dollar package with a leverage package up to eight. we could do more of this but then you need the backing through a guarantee mechanism like what we have with the member states who have pledged $25 billion. on the other hand, we know that one day we will stand in front of a huge mess when it comes to the recovery of europe. bank willi think, the need to go full speed. that requires them definitely to supply capital injection into institutions which is the most fight -- effective financial institutions around. i am optimistic that the eib will play a significant role. vonnie: thank you for your time today. let's check the markets. is a riskt certainly on day on this tuesday, bouncing back after yesterday's relatively small declines if you can call 1% small. what we have on this day are gains of almost 3% on the s&p 500, the dow and the nasdaq and 2000 are indicating that viral sign

the crisis secondly i think there is a very easy technical solution to the problem if the european investment bank which for example the soup of corona on and then the e.c.b. would buy that bond which is perfectly in line with the current you treaties because the e.c.b. can look directly fine it's a government but it can finalize a public bank such as the b. then it will be no risk at all ringback because the e.c.b. can simply never own all of your rules and so there would be no risk to germany as well well all this technical stuff aside somebody will end up paying for this who will end up paying for this. well if we do not invest enough to. introduce our economies then we will all pay a large price it's very simple no the economy has been put on a halt and we just bought time with all that to prepare for example our health care systems to to have enough beds for 4 sick patients but if we do not undertake those investments not and we need for of the cutting to the crisis then we can not reduce the economy so it will be in the long run more expensive because if you look strong corporations we will

germany will agut that actually there billions of euro help by the european central bank, by the european central bank, by the european investment. the commission just announced a 100 billion package for workers who have lost theirjobs. i don't think there will be much of a difference to what we have seen in the euro zone crisis. if i could just add in, we have seen in the euro zone crisis. ifi couldjust add in, one of the interesting things about this crisis is that it has shown that many of the better in politicians around europe, and indeed, around the world, have been overtaking idea logically. in the netherlands, for example, which has had the loudest voice in countering this idea of corona. . . voice in countering this idea of corona... the prime ministerand '5 coalition is under pressure, two of the parties have joined him in forming the government, are more inclined to show fraternity and solidarity with italy, spain and france. i think there will be a lot of pressure, and i would be interested to see what kind of pressure at the current ruling coalition in germany might come undone. in the end, the economy is so thoroug

the crisis secondly i think there is a very easy technical solution to the problem if the european investment bank which for example the super occur all of them and then the e.c.b. would buy that bond which is perfectly in line with the current you treaties because the e.c. cannot directly fund as a government but it can finance a public bank such as the i b then it would be no risk at all because the p.c.b. can simply never run off euro's and so there would be no risk to germany as well well. all this technical stuff aside somebody will end up paying for this who will end up paying for this well if we do not invest know enough to. do to boost our economy then we will all pay a lot for us it's very simple no the economy has been put on a halt and we just fall time although to prepare for example our health care systems to to have enough beds for 4 sick patients but if we do not undertake those investments not and we need for of the cutting to the crisis then we can not reduce the economy so it will be in the long run more expensive because we will destroy corporations we will destroy jobs so in th

off guarantees on the level of the european investment bank this and also unemployment and sure. this is our 1st contribution that we are going to implement quickly that's not enough and we already said that we need funding for reconstruction to recovery. and recovery and. the question of what this recovery fund is going to look like was the topic of our debate today the goal is to strengthen the euro to strengthen european cut hegemon and solidarity in order to master this crisis and we know that the impact of the virus in our countries is different cording to country and that's why the european cohesion is important and the economic ramifications of the virus jeopardizing their european no cohesion that's why the recovery fund has to contribute to. the possibility of all european countries to every act and to make efforts like france and germany are ready to make them already. has to work together that's why our economies has to have to recover quickly and that's why we want to issue 500000000000 euro of. the shirt term for. expenses for the sectors and regions that are hardest

bio technologically technology company has received 100000000 euro loan promised from the european investment bank the money is to be used to speed up development of a vaccine against the novel coronavirus biotech is currently waiting for results of the 1st clinical trial of its vaccine candidates friends a central bank has announced paying with cash does not magically increase your chances of contracting the coronavirus the bank says several laboratories reached the conclusion for comparing coverts transmission rates on banknotes and other surfaces. now 19 was the chinese year of the pig but it was not a good year for chinese pigs their herds decimated by the african swine fever a deadly disease sparked worldwide crisis which hit china particularly hard the country is the world's biggest pork consumer now the chinese government wants to restore our food which includes a major shift in policy. it doesn't look like much right now but this flattened field will soon be a new pig farm and it's just 70 kilometers from beijing city center this is a bigger versal for china up until $27000.00 there was a

s lending arm the european investment bank plans to spend 4000000000 euros on infrastructure and social programmes in africa this year. analysts say it's in response to the flood of chinese investment to the continent. during a visit from the line expressed optimism about the african economy saying growth and increased cooperation could also benefit europe africa is home to the fastest growing economies of the world. and. your nations community of nations are becoming more and more united if you look at the african peacekeeping missions to the new free trade area and they're interested in and just like you you want to be the master of your future so there are a lot of common points we have to discuss and where we can find common path towards the future i truly believe that a lot stronger africa will be the stronger we will be to let's go over to marina strauss our correspondent in as our bar has been following the talks for us closely . how does fall the line envisage a stronger africa. oh she was an equal partnership what i look at 1st mention peace is sex is ringback just your office

the european investment bank has pledged a 100000000 euro loan if the human trials are successful. buying on tech and pharma companies all over europe are gearing up for mass production of a potential vaccine even if success remains uncertain. you are already equipping our facilities and finding production partners all over the world to help us produce large quantity or something as soon as our production process is up and running will also start producing and stocking it despite the economic risk of having to throw away all this vaccine if it doesn't succeed in trials in mosul so to me. an impressive number of projects including sars kovi 2 vaccine trials are underway at universities and companies in germany switzerland and austria but research is advancing all over the world $23.00 substances are already being tested on humans in projects mainly centered in europe the u.s. and china all told scientists are now investigating more than 150 different vaccine candidates nerdish this is necessary because it's quite clear that no single manufacturer could really meet the world's vaccin

act so in the deal itself contains 3 components firstly there is a loan guarantee by the european investment bank in luxembourg 200000000000 euros for small sized and medium sized companies the secondly there is a new unemployment scheme to finance unemployment benefits in poorer member states worth 100000000000 euros by the e.u. commission made available by that you commission and there's also a 3rd component 240000000000 euros from the european stability mechanism the years m. which was created in the greek crisis that now makes money available for italy france and spain without conditions they only have to take care that these finance instruments are used for the technical the corona virus and the health systems so a lot of talk a lot of measures of you mentioned also a lot of talk of solidarity but ultimately you know we we did see some fault lines on display it's a killer the way those between north and south within the e.u. so which country is ultimately have achieved what they wanted and which countries have not. well the spain italy and others have achieved easy access to cheap loans but

secondly an extra $200000000000.00 euros in loans for small and medium sized companies from the european investment bank. and finally a short time work steam suggested by the e.u. commission worth $100000000000.00 euros it would encourage companies to cut workers' hours not their jobs. hearted nations such as spain and italy welcome the idea but they say they need more so-called corona bonds a new type of public debt instrument backed by the euro zone so far germany austria finland and the netherlands strongly oppose the idea but financial experts going to involve tells me the positions on mutual i's debt have been softening so this should not be seen as a backdoor entrance for a fiscal union because if it is that i think it would be not acceptable to the north of europe i mean the north of europe does not want a permanent transfer union to be created so it needs to be in a sense temporary and targeted to the coronavirus cost but if that is achieved i think joint issuance should be feasible french finance minister lemaire already floated the idea for a common fund and dutch prime minister of also has a

german vaccine champion cure vaca is getting 75000000 euros in loans from the european investment bank the company's carrying out clinical tests on a potential koeppen 1000 vaccine the money while the company complete a production facility and support the development and mass production of the vaccine. german factory orders rose by more than 10 percent last month that's according to the federal statistics office that's less than expected some analysts say the figure highlights just how difficult it will be to repair the damage wrought by the coronavirus orders are 30 percent lower compared to this time last year raising fears that europe's largest economy will continue to suffer from the global recession. and with more on this year's our financial correspondent conrad buson the german manufacturer is not out of the woods yet yes there was an increase in factory orders from april to may but if you compare them a numbers to befall the corona lock down factory orders are still much much lower for example in the german car industry new orders in may were 47 percent lower than in february s

that their european investment bank and its place we all know why it is that the those are the long compliments badly need and also those grand exist. that our departure terry subsidies for as an artist it's 100 species to digital of course add it to the existing data plan. act it is small because it's only difference between the country's interest rates and when the interest rate of the loan and the unit is equal to that it is if it interests it rates are different because we have a mana efficient monetary policy that we need to have virgin's of the interest rate for a comma and then we judge it was in order to be completely through before everything needs to. those are in a measure so i think of 500 grants and 250 loans is really the right mix it up to do you agree with articulations on the european semester and moment. we are working together with all our partners because you don't know it and you shall be sure you know the frugal countries we talked about let's not forget it is our trees that are no net beneficiary of the. market and to remark. that they have participated and. the common sp

but some of the biggest investments are focusing on sustainable energy in kenya the european investment bank with around 200000000 euros helped built africa's largest wind farm with 365 wind turbines and in eritrea 2 solar hype and power systems have been built to provide electricity for over 40000 people and businesses in 28000000000 years. if my colleague marina strauss was at a european union press conference in brussels she sat down with the e.u. commissioner for international partnerships one of the criticisms we always hear is that europe focuses a lot on carbon migration from africa and doesn't really look at the african perspective on migration for example and also ties development aid to migration issues will that be different with this new strategy. i think. it's important to improve living conditions in african countries because. for instance about 60 percent off their citizens in africa are young people people under 30 years old so i personally see that it's our duty to try to help them in order to to provide them also hope. but at the same time of course i think what african par

our finance ministers have already agreed upon in that it's going to be delivered by the european investment bank $500000000000.00 by the finance ministers and 500000000000 budgetary aides through the franco german initiative we think this is absolutely necessary in order to compliment the initiative already taken on the national level it's. more a lot of it potentially available but as the w.c. political editor mckeel academy tells us the money will not be your hand oh. well they want to put both 500000000000 euros extra on the table but that comes with say some terms attached i've got that paper here they want to see europe i'm. much stronger from this crisis now an arguably everybody does want to see the country a much stronger but also the whole question of whether that could lead to more responsibility shifting towards brussels is a debate they want to have notably the whole euro bond debate is off the table certainly that particular what many in france have been on the opposite end of that debate for a long time now they demonstrate unity and the willingness particularly of germany to put m

so-called european stability mechanism some 240 of 1000000000 euros secondly there is the european investment bank that will hand out loans to small and medium sized companies worth some $200000000000.00 euros and finally there is a short time work scheme from the european commission worth $100000000000.00 euros so in total we're looking at over half a trillion euros and that is why the head of the euro group mario sent a note today and wanted to clarify when he was asked why this has taken so long seeing that the meeting was delayed and it took a couple of days until they made this decision that is exactly why it took so long it is a big big commitment he said it is unprecedented and he also clarified that it is bold and bishops and it was unthinkable just a week ago. have italy and spain achieved what they wanted. yes they have achieved some of their goals basically something remains on the table and something is off the table let's start with what's off the table and that is tough conditionality conditionality for money from the european bailout fund will remain at a minimum minimal. and there

stability mechanism to shore up struggling member states and a 200000000000 credit line at the european investment bank for struggling small and medium sized companies among the countries backing berlin's position in the netherlands. we've come far but we're not quite done either. we are of course talking to each other about what provisions europe should make what things we can do together to ensure that we get through this crisis as best we can. but the measures don't go far enough for countries like spain and italy which have been hardest hit by the pandemic and are least able to afford it they're calling for the introduction of so-called corona bonds which would see member states pull debt for the 1st time allowing countries with bad credit to borrow money on the cheap backed by their neighbors economic clout who pointed to the war i don't want to point a finger at anyone. responsibility is to reach an agreement within the next 24 hours a failure is inconceivable and shake it. but with a calm is on lockdown throughout the e.u. the clock is ticking for the blocks financial leaders to israel now where

as am i just 1st thing and the 2nd that is for our companies is a credit program from the european investment bank which i think is very important for small for medium size for big companies and then the 3rd thing is the so-called sure foreground that is to support people. for the moment being i have no work but death could return to their original joint and in this meantime need some support in all these free programs germany is prepared to give guarantees these guarantees some up to quite a big amount of billions are furious and i think that is a 1st step the 2nd step will be of course every calorie program which we mired in cruel in the next moderen your financial framework of the european union and of course germany as biggest contributor in the european union met my own because now the united kingdom has a draft as we are and all of the biggest player they have will of course going to bits are they in so many various with those that how weaker and i think these are important. steps we are taking but of course we need to continue because it is also in our end of germany interest that the compl

the european investment bank and the sure program for a word go. meaning that we guarantee that it's more than a 10000000000 euros which we are prepared to lose in the worst case and all these 3 programs are not mantras for a germany but i'm meant to support those who have made difficulties now but when i was mentioning restarting about the future recovery plans i think that we will be able to find a way that the european commission that is also true for the sure program for the purpose can. get an image money of course the member states because the european union has not the trough of budget only the member states or from the national objects the member states must always guarantee them and then the amount of guarantees and therefore also the amount the volume of 3 sprint germany in the future will be a lot bigger but let me point out one thing through the euro once i am absolutely convinced that even if we want to have a majority in the german parliament. the constitutional court in germany they would not accept such images lation because it exce

investments which the commission hopes to be able to leverage and these will be backed by the european investment bank and you were talking about this is if it's a done deal but there may be opponents he's likely to oppose this deal. well one thing politicians lawmakers have taken issue with across most party lines here is that the the money coming from from from the e.u. from the e.u. budget it's relatively small 7500000000 out of one trillion and a lot of the money that is planned within this this master plan is not it's not 100 percent sure yet and then another issue people are taking here is that some countries as in many you projects will receive less money out of out of this program than they pay any for example germany but that all aside most groups in the georgia political groups here decide that this is a very important deal and has to be done but they disagree on some of the technicalities or the correspondent wants to with the latest tonight on the european union's plan green deal marks thank you. germany's chancellor angela merkel has invited the 2 rival governments of libya as well as the

anna: maria tadeo is in brussels with the european investment bank president. maria? ined by the president of the european investment bank. onave to ask for your take the european economy before we move on to anything else. interday, there was euphoria the markets. today, the market has taken a step back to reassess what is happening and we have coronavirus coming into play so can we avoid a double-dip recession or not? mr. hoyer: that is easy to be answered. since yesterday, we see light at the end of the tunnel and we saw it is real life and hope. it is not a surprise the stock markets reacted so strongly. overdose so wean are going into durational development in the next hours and days. are you more optimistic or does the uncertainty remain? you mentioned the vaccine is great news and it is, but when it comes to visibility over the next six months, it seems very clouded? it gives hope and i think it will have a trigger on effect in other parts of the economy and from that point of view, i am optimistic. it was a game changer, which we certainly needed. and we are pr

well 5 out of the 6000000000 euros pledged if coming from the european commission and the european investment banks earlier we spoke today w.'s chief international editor in brussels richard walker to see if the money raised will be enough. certainly these few 1000000000 euros are not going to solve the problem to be fair was a lot of underlined the president the european commission is quite open about that i mean she has said many times that you know this is a step by step process and tens of billions will be needed over time. but still i mean here in brussels in a couple of weeks' time there's going to be a summit of e.u. nations trying to find agreement on a recovery fund to get e.u. economies moving after the pandemic as they as they emerge from it and they're talking of raising 750000000000 euros so more than 100 times what has been raised today so i think many of our viewers watching perhaps from poorer countries in the global south might be watching this and thinking well ultimately you know the west you have rich countries that are more interested in helping out other rich countries than th

for member states and exposed companies at preferential rates a 3 fold plan involving the european investment bank the european stability mechanism and short working they had up to around the trillion euros a step change in the economic order nice and we deal with our union this emergency plan we'll see old our economic and social fabric as we dive into a recession but this is not enough for the italians whose prime minister believes the e.u. solution is way off the mark. but that the main battle that italy must carry on the european table concerns of fund that must be financed with the real economic sharing of the effort such as with euro bonds yes the euro bonds the famous euro bonds the fund that must have a power proportionate to the numbers and resources that are required by a war economy the fund must also be available immediately i am telling all my counterparts. but many central northern european countries remain unconvinced by that specifically germany the vicinity here in the florida as you know i don't believe in mutual responsibility in the current state of our political union and that

these will be backed by the european investment bank. brent: you are talking as if this is a done deal, but there may be opponents. who is likely to oppose the deal? >> one thing politicians and lawmakers have taken issue with across party lines is that the money coming from the eu budget is relatively small. 7.5 billion dollars out of $1 trillion. a lot of the money that is planned is not 100% sure. another issue people are taking is that many countries will receive less money out of this program than they pay in. for example, germany. that aside, the majority of political groups here decided that this is a very important deal. they disagree on some of the technicalities. brent: our correspondent with the latest on the european union plan green deal. thank you. can germany's chancellor help peace in libya? that is the hope. berlin confirming that has invited the two rival governments of libya and their generals as well as the countries supporting them to talks here in berlin. it is an attempt to shore up a shaky cease-fire and it comes

northern country will argue that actually there are billions of euros help by the european central bank, by the european investmenton package for workers that have lost theirjobs. i don't think there will be much of a difference to what we have seen in the eurozone crisis. if i could just add in, one of the interesting things about this crisis is that it's shown that many of the veteran politicians around europe, and indeed around the world, have been overtaken ideologically. so, in the netherlands, for example, which has had the loudest voice in countering this idea of a corona bond, the prime minister, his coalition is under pressure, two of the parties have joined him in forming the government are more inclined to show fraternity and solidarity with italy, spain and france. which also has a severe outbreak. i think there will be a lot of pressure, and i would be interested to see what kind of pressure the current ruling coalition in germany may come under. in the end, the economy is so thoroughly intermingled, particularly on the continent, that to say, well, we are not going to help corona bonds or, indeed, th

-- is any european bank investable? lippo: if you look at the disclosures of the banks, some of the banks are clearly projecting capital rates. even some conservatives say are -- [al ratio is indiscernible] alix: filippo, thank you very much. filippo alloatti, federated hermes international, thanks so much. james athey of aberdeen standard is still with us. what are your thoughts on european banks kicking off their earnings season this week? james: i wouldn't touch the equity with a barge pole. profitability of banking in general when you have low yield, flat curves, huge economic disruption, it is difficult to come by in europe. you still have bad loan problems that have never been cleared up. it occurs to me that the response is to do more of what hasn't worked and that has been a problem in previous episodes, which is not concerned with the quality of assets. you are concerned more with the optics. all of this liquidity the ecb provides, can keep banks going but it is not necessarily finding its way into economic prod

extra money coming to us via guarantees from the european investment bank all of this is quite good news but it is about a 3rd of what the european so the bank has said we needed in terms of fiscal stimulus across the you that's why i said beginning with my need a little bit more to then and we haven't finished i think there we don't have any serious shared risk taking into forward corunna bonds or euro bonds that many countries wanted so yes it is quite limited and presence and quality countries are going to end up having borrowed about more and the worry is what's going to happen and when we come out of it assuming we're doing a reasonable way in terms of needing to retrench again so we have this terrible fear there are 70 over the last 10 years and i'll begin to see it again who suck that is the next question who how are we going to pay for this who is going to pay for this for the layman these i water amounts of money have to come from somewhere who's coughing up. well. so if we have a repeat of the discovery during the euro crisis which basically mean that everybody pays for themsel