temple recall went up once we need temporary corona bonds to help the worst affected countries we need them for selfish reasons too the german car industry is reliant on production happening in northern italy so it's not just about solidarity it's in our own interest to do this month thing. when the doc who coined. the pandemic has brought neighbors together but it's also put strains on relationships where individuals and nations and now while europe works out how to organize aid for the long term direct help for the sick will continue but what about the financial sickness that's gripping europe political correspondent nina joins me for more nina good morning help us understand why coronal bonds are such a sensitive topic well you have to understand that it's not the 1st crisis in which common bond so common financial instrument to get money on the markets is being discussed by the members of the eurozone this was also the case 10 years ago in the financial crisis and already then it was a contentious issue and it is a financial instrument that basically combined securities from differ

financial crisis some 10 years ago and it's back on the table to some extent now in the form of corona bonds are basically euro bonds or corona bonds will be a financial instrument that would work with guarantees by all european countries that are involved in this project you have to remember the euro zone works with countries that share a currency but they don't have the same fiscal policy making they don't have a joint finance minister don't have the same budget etc so the fear is by the fiscally conservative countries like germany and the netherlands is that there's no guarantee what other countries would do without money and that ultimately their own taxpayers would have to shoulder the liabilities for this debts but you know the knowledge of peers has this position on. how do we interpret. italy's prime minister content up until yesterday was adamant that he would battle until the end for corona bombs and then on tuesday he spoke ahead of the e.u. summit that is taking place on thursday where the 27 leaders are coming together to figure out how to get a european recovery fund underway a

corona bonds have become a symbol of european solidarity it's really wants unconditional support from brussels the country is battling a crisis on 2 fronts. now for many people around the world this coming sunday will be an easter unlike any they've ever experienced in countries of lockdowns and stay at home or does they'll be no chips services no family gatherings and no easter egg hunts for children but who says that easter bunny is also on the lockdown things that used to the easter bunny rather is a non essential work all sources tell us peter cottontail just be hopping down the bunny trail. place in our that we do consider both the to theory and the easter bunny to be essential workers new zealanders obviously take their easter seriously so did the swiss where many of this year's batch of chocolate bunnies are dressed in protective masks that way they stay safe on their way to their customers mouths . this may look like a medical laboratory but it's an italian chocolate egg factory the owner has rolled with the new challenges of distributing eggs during the coronavirus crisis. wi

countries one of the union to do more to ease access to financial markets by creating so-called corona bonds but that idea was vetoed by wealthier countries such as germany the netherlands and finland. earlier i spoke to brussels correspondent diogu motus and he gave us more details on the deal. right this rescue plan basically consists of 3 safety nets 1st of all there is the money that comes from the european bailout fund the 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

in sharing the costs of the recovery from the coronavirus endemic of berlin considers so-called corona bonds to whom can european solidarity survive tobit 19. africa on a virus death toll rises in britain the government is focusing its efforts on developing a vaccine the 1st human trials are set to begin this week. i'm nearly 4 almost done well we begin in southern germany where the state of the of area has canceled this year's october fest because of the coronavirus pandemic the famous the festival in munich attracts more than 6000000 visitors annually authorities fear it along the bend to take place could trigger is spike in infections it obvious bustin hosack went to the site offer you a fest where things look very different this year. in a normal year they would start setting up for the october fest in june and once it starts there would be hundreds of thousands of people here on any given day where i'm standing right now is where all the big beer tents would be but the only tents that are going to be here this year are from that coronavirus testing facility over there normally millions

night talks they are due to meet again on thursday eurozone countries are split over so-called corona bonds which with the member states guaranteeing each others' debt italy is pushing for the bonds the virus has had a devastating impact on its economy. these fisherman from fumin cino near rome the still free to go to see. unlike other italians who would like to work but on too loud too but with no restaurants open no one wants the fish they catch. everything is ball and by half sales demand and what we earn we used to go out by days a week now with the coronavirus in the lack of demand it's only 3 times. the whole of italy has been in lockdown for 5 weeks the nice sectors providing essential services such as food and health care couldn't continue operating its lee was already grappling with financial problems now the virus is hitting europe's 3rd biggest economy especially hard businesses are in trouble and many people are finding it difficult to cover their living costs the government has come up with a series of rescue packages. this decree provides businesses with 400000000000 euros in

countries such as the netherlands germany that have good credit ratings to mutual i used to share the corona bonds is what they're called why is that i mean it's a taboo here in berlin isn't it you know it's been a taboo for decades this was known as euro bonds before we've talked about this before let's 1st talk about the current borrowing options that's the european stability mechanism the eurozone bailout fund what that means is that the e.u. will borrow money for these countries that need it those countries will individually take on the debt meaning that italy would still pile on more debts and then it would have to meet a certain series of conditions would have to maybe make reforms that could include painful welfare subsidy cuts or tax increases that would be politically unpopular and that's why countries like italy don't like that option they believe in mutual eyes that sort of like your parents cosigning on a car loan for a teenager who doesn't have the credit yet alternately it false them to pay it opponents say that's not fair they're taxpayer supporters say this is an issue of solidarit

that you do not believe that the french proposal joint issuance of recovery bonds, let's call them corona bondbonds, call them what you will, i guess, you don't think that would work? >> it depends on what you mean. talking about eurobonds, from a technical perspective the modularization of that within the european union, this is not allowed within the european framework right now. there are other possibilities to issue bonds over certain institutions. if you call these corona bonds, why not. yet be, for example, why not? also other possibilities. you have to differentiate by what you mean when you say corona bonds or eurobonds. austrian was the finance minister speaking to us earlier. a few more numbers to bring, u.k. total virus cases crossing 50,000 deaths. there is some good news here. new u.k. coronavirus deaths have slowed for a second day. some signs may be that the social distancing measures put in place by the british government may be starting to have an impact, though the total cases have now crossed 50,000. the new deaths number is starting to fall. let's get more insight on the eu

toving -- do you have achieve corona bonds, or do pretty much the same thing with esm?ane: i think the esm will be the first stage of this. that will i think be a test. i don't think anybody really knows at this stage what the economic cost of this crisis is going to be, how effective the amount of stimulus, the amount of -- and therefore what is going to be needed further down the line. certainly i think the esm will be brought into line before they go down the line of corona bonds, but it is going to be something that just develops. and how deep will this crisis be? we just don't know. statistic we first need to look at to determine that is the human cost. the fertility's and when this is becoming the leveling off. we got to see that in italy perhaps, but it is too early to be confident. but we are certainly not there yet in terms of france and spain. the next two weeks could be crucial in giving us that sort of data, and giving economists something a little bit more -- giving economists and bit more of a framework about the assumptions of the globe economy impact. fr

counter unemployment measures sought compensation you states now the big question is corona bonds that word seems to be off the table but the german chancellor here pointed firmly towards the e.u. commission budget as the source of e.u. solidarity but then speaking also as the european leaders saying that this is the time for europe also to consider a measures to work closer together the big question mark will be at a moment where many nations became suddenly very national weather a lot of progress will be made there. thank you very much for that. you're up to date with see you soon with more on mules and updates i'm going to use a. book. going. into the conflict zone team sebastian. this week on becoming back on a man like millions of people around the globe this social distancing this book for years to speak probably can cause. folks to lose a parent i could close the shop probably to. the spread of the disease. conflict. 30 minutes to. the climate crisis is in danger in our planet and. now scientists hope to cool the earth's climate system artificially with geoengineering. but can w

package and this is of course hugely significant because as you mentioned the thorny issue of corona bonds has been just dominating these discussions and there was very little agreement on that issue yet not part of this deal yet explain to us then what these corona bombs are and why germany is so against them ok so basically corona bonds are an updated version of what was once called the euro bond this was a an idea that was types had to buy 10 years ago off the financial crisis in 2009 the idea basically is to pool debt so at the moment every euro zone member has different conditions attached to borrowing money so if you're a country like italy which has a pretty poor credit rating it costs you a lot more money to borrow if you're germany which is very fiscally sound you can borrow money really easily everyone wants to lend to germany beat it because i think well we're going to get this we know that germany has a lot of savings it's contentious because under this new plan the debt would be pooled though it means that richer nations more fiscally stable countries like germany the netherla

ready to explore this idea of a bigger european budget which in a way is a workaround for corona bonds because your member states would only in directly be liable for the debt of other member states in that case so that is the good news at the end of the day it will not help to paper over the age old differences of mutualistic debt and corona bonds as such are still not on the table so what i expect from today's meeting is at best. an order from leaders that the european commission explores ways how to rule create such a recovery fund. what is it that the german government has against this idea of the neutralize debt to scare extensions carona bonds. that it wouldn't have control over there would be no limits on control and it would bypass the german parliament this is also something that would be seen as potential political poison particular with the voters of angle america's conservative party without posse having gained so much more public support in the depths of this corona crisis and the fear his is that this could be an example for the future that this will potentially not be li

we have heard it any times and we were talking about these corona bonds, euro bonds. germany and northern european countries have always been labeled the bad guys by southern european countries. did the chancellor today appeared to be on the defensive a little bit? >> absolutely not. she spoke in n a preress confere just after thehe end of this video, prince summit and seemed pretty satisfied. she describedd the atmosphereres very positive andd friendly and said therere was absolutute agreemement that together, the u memberer countries musust find y forward. i thinink in partt,, this lack f defefensiveness is because this morning to some d degree, s shet on thehe offensive and she manad to get herseself out of t the cr germanany s sometimes gets b bao asas a naysayer.r. she said verery clelearly we kne must putut more money y on the tatable. germany only does well whenen te rest of the e eu does wellll. then, she made t this very clear ststatement in her remarks to parliamement this morning, sayig we will be increasing our contribubution to the eu budget significantly

i know that has been more than a fight on corona bonds.'s get straight to bloomberg first word news in new york city. u.k. banks have agreed to scrap dividends this year. it follows similar announcements by european peers. they are asking them to cancel payments, them they expect -- asking them not to pay any bonuses to senior staff. xerox is dropping its hostile takeover bid for hp, citing uncertainty from the coronavirus pandemic. it marks a blowout to the efforts, though they may revisit the deal in the future. , going toh airlines burn through as much as $51 million in the second quarter. revenue is set to crater by 53% during the time. they are urging the government is $35x rules buys much billion in cash refunds. 35 billionmuch as dollars -- relax rules by as much as as $35 billion. still with us is ludovic subran. channel,ke german saying they need corona bonds and more support from germany. germany is pushing back. is this a make or break situation for the eu? >> i think this is the ultimate litmus test for the validity of the euro

bailout that does not involve corona bonds?hat is what the european is trying, this whole panoply of measures, including with the investment bank, what the ecb is doing, including the article 122. ultimately there is a number of us not just at peterson but at the central bank, you have an incomplete fiscal union and the monetary union remain politically and economically at risk, so the absence of corona bonds eventually becoming european bonds is not just a missed opportunity, it is an ongoing weakness. we can help italy in a number of ways. you are going to see these spreads we are seeing now on italian bonds despite ecb action , until you have some kind of european intervention. generous for you to be with us today. i want to highlight what the markets are doing. what is distinctive now in the last 24 hours is yesterday it cushing, oklahoma oil down. brent crude was relatively steady and that changed with tont plummeting from 26 down 20 and now it to one a1 dollars a barrel. we have -- now to $21 a barrel. the june contract i

temporary bonds now this is the neutralization of european debt the german government objects to that strongly of the polls that i've seen show that more than half of germans also don't agree to corona about bond so what would you say to german taxpayers why should they shoulder some of the liability for italy's debts. it is not about os shouldering italian debt i know that the government and conservative forces have try to frame it as the same debate as interest i was in the 8 but it's a lack of honesty not to. discuss the issues really at stake we're in a different situation their friend instrument is on the table and that's what we're talking about it's about taking to get her alone as do european union spending it together to fight to spend and then in get back together there's nothing i would germany taking on italian debt or whatever everybody keeps on say it's all one and saying correctly in the situation where the entire street is in flames and where we're not going to tell everybody please go and distinguish the fire yourselves if we don't do it to get a real have to have entire street in flames for long to go and that's not in our interest we as germans have a strong inter

example, why not call them corona bonds?e have all the firepower we need, and we will use it. nejra: maria tadeo joins us from brussels with the latest. good to have you with us. are we likely to get a decision out of this meeting? maria: you know very well finance ministers are given 10 days to bridge those different opinions, and as you heard, there are many different ones. i would say it is different this time and it is not the first ofe we have heard the idea europe with a joint instrument. what is huge is the countries that are really pushing for it are not willing to let go of it. before when angela merkel would say this is out of the question, we are not going to do it, the waters were almost calm. but this time the countries are not letting go of it. the latest one is the italian prime minister, who yesterday night said that he did not think it was a good idea. that is using it as a bailout fund. do not look atng it as a bailout, this is money that is available now. of if you was into the words think isconte, what we

here in germany that are pushing the jug of government urging the government to agree to these corona bonds as they are called but we have to caution that it's not a matter of germany giving money we are talking here about loans that are to be issued and about germany and other countries all countries in the european union guaranteeing those loans so it's not actually money that's being kind of pushed across the table it's a guarantee for loans but because the german economy is by far the strongest in europe if these loans should end up not being repaid or in some sense getting difficult it will be germany that ends up in some sense guaranteeing these loans together with other countries so it's that guarantee that the germans are concerned about the german foreign minister and to the economics minister have recently published opinion pieces in the series of european newspapers offering their alternative they're saying that a common european stability mechanism which is already in place should be used and that the rules for the for giving that money to various countries should be relaxed so

tothere are possibilities issue bonds over certain institutions, like esm, if you call that corona bondsonds? call them corona repeated, the esm is an instrument that is completely inadequate. andbonds are a sufficient adequate response to the emergency we are facing today. >> we have all the firepower we will need and we will use it. morning, everyone, bloomberg "surveillance," some of the interesting voices on monetary theory over the reach of this pandemic, and so much coming back to federal reserve policy. the secret is when william white writes, everyone reads every word of it. the chairman reads it, the vice chairman, the governors, and the presidents read william white because of his reach of history and economic theory. it is second to none. formally with the oecd and bank of international settlements, we are thrilled william white could be with us. au changed economics with sprawling history of economic theory for the dallas fed -- "ultra easy monetary policy and the law of unintended consequences." even you could not see a pandemic coming. let me ask the money question. we are

hit to european tourism but italy france and spain would like brussels to go further and issue corona bonds a new form of shared debt many german politicians worry that would put new burdens on the german taxpayer is the key the. crisis is no reason to bring in through the back door financial instruments that involve public debt which were wrong in the past and will be wrong in the future corona bonds would lead to more debt and also mean that all of europe ultimately lose it. but others say if european unity means anything it should be about flexing germany's economic muscles during this crisis. temporary. we need temporary corona bones to help those worst affected countries we need them for selfish reasons to the german car industry is reliant on production happening in northern italy so it's not just about solidarity it's in our own interest to do this moment thing. when. the pandemic has broad neighbors together but it's also strains on relationships where individuals and nations for now while europe works out how to organize aid for the long term direct help for the sick will continue.

member states are debating corona bonds, a way of sharing ther cost around the eu to help the memberaffected. but as in the eurozone crisis, they're in the south, and countries like germany and the netherlands — prudent with their money — have already rejected a call from france, italy, spain, ireland and five other countries for a common debt instrument. one of the world's oldest unions is feeling the economic strain — 10 million people are nowjobless in the united states of america. michael, how is the us coping with that prospect? i don't think anyone can begin to have a policy for that. when the economy is being shut down piecemeal, remember that the federal response from the white house, two weeks ago, they were saying that we will be in a church for easter. now finally the penny has dropped, and they are acknowledging that this will go on for quite some time. the us are shutting down new york city, now the epicentre of the global pandemic, effectively shut down. it was going to be a moment of increased unemployment, but 3.3 million people filed unemployment claims last week. 6.

to raise joint funding by issuing so-called corona bonds other nations including germany and the netherlands reject that idea and. not correspondent teri schultz is following this story for us in brussels terry tell us more about what's in this deal. well the deal doesn't cover everything yet it was a preliminary preliminary step but there's a lot of relief that countries have agreed that the euro euro group finance ministers have agreed to take more of a joint approach to dealing with the economic fallout now some of the major elements are that there will be and employment insurance fund for companies so that they can cut employees hours and not jobs that's a huge concern with so many people sitting at home so many people having lost their jobs already so this is expected to help businesses keep more people on the payroll they will also loosen credit lines for both businesses and for governments and that's a big deal it of course doesn't go as far as many governments like italy and spain would like to see at the moment but it will provide some relief some assurances for these countries that

corona bonds have become a symbol of european solidarity it's really wants unconditional support from brussels the country is battling a crisis on 2 fronts. the chief executive of twitter is committing $1000000000.00 a quarter of his wealth to coronavirus relief efforts jack dorsey said the funds would come from his stake in square inc a digital payments company that he also co-founded goes he said he hoped to move it inspire others to do something similar. now for many christians around the world this coming sunday will be an easter unlike any in living memory in countries with lock downs and stay at home orders people are left to celebrate with no church services no family gathering and no easter egg hunts for the children but wait who says the easter bunny is also under a lockdown he says the easter bunny isn't essential in these trying times all sources tell us peter cottontail may just be hopping the bunny trail. place in our that we do consider both the to theory and the easter bunny to be essential we can see new zealanders obviously take their easter seriously so did the swiss

, in the netherlands, for example, which has had the loudest voice in countering this idea of a corona bond of the parties have joined him —— thatjoined —— that joined him —— thatjoined 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, the best way to go forward, we are not going to help italy or spain, it could have an incredible knock—on effect on the northern countries. i think as the weeks go by, politicians are going to come under more pressure in the north than perhaps they are at the moment. lyse, it's interesting, the example there that michael gave of the comparison with the 1920s and ‘30s, because i suppose the dilemma for any politician now is that your reputation destroyed by how you

you raise joint funding by issuing so-called corona bonds all the nations including germany and the netherlands rejects that idea. non-correspondent teri schultz is following this story for us in brussels terry tell us more about what's in this deal what the deal doesn't cover everything yet it was a preliminary a preliminary step but there's a lot of relief that countries have agreed that the euro euro group finance ministers have agreed to take more of a joint approach to dealing with the economic fallout now some of the major elements are that there will be an employment insurance fund for companies so that they can cut employees hours and not jobs that's a huge concern with so many people sitting at home so many people having lost their jobs already so this is expected to help businesses keep more people on the payroll they will also loosen credit lines for both businesses and for governments and that's a big deal it of course doesn't go as far as many governments like italy and spain would like to see at the moment but it will provide some relief some assurances for these countries that th

summit to discuss sharing the cost of recovering it me or for older nations to issue so-called corona bonds but the idea threatens to divide the uk. also on the program in the 1st case off its kind in the welsh to serious suspects of torture go on a trial here in germany campaign is hope it'll be the 1st step towards justice for thousands of victims. plus a conversation with the 99 year old fundraising phenomenon captain tom one after raising the staggering sums for britain's health care system we're also the world war 2 veteran how he views this battle against the pandemic. hello i'm christine want to welcome to the program. i'm going to medical say as germans must continue to show discipline in the face off the coronavirus in a speech to parliament she criticized the lifting of some lockdown restrictions as to hasty she said her fear was the country might squander the gains it's made so far if people became complacent about social distancing she also called for a bigger european union budget to support recovery in the block. across germany more people of venturing out a week after the 16

the latest one we have seen, which moves away from the pure form of the corona bond is this recovery he spanish are pitching. it is almost the size of the italian economy. by funding a done perpetual bond, which some argue is very tricky, and the obvious question is who is going to buy the funds. the answer would be the european central bank. this is the idea that is being floated. it is off a proposal by the french government which says we move away from corona bond and focus on the fund, and maybe that is way to bridge everyone. we just heard from angela merkel saying she does not see corona she will show solidarity. vonnie: there does not seem to be any moving on the part of the netherlands or germany on the corona bond. what about the bad bank idea? maria: this is a story that was reported which suggested the european central bank was slow to the idea that there could be one -- companies and lenders in europe could see companies often -- but also clients not being able to service some of their payments. that was -- that has removed some of the pressure. what we are seeing is the e

countries wanted the union to do more to ease access to financial markets by creating so-called corona bonds but that idea was vetoed by wealthier countries such as germany the netherlands and finland. earlier i spoke to brussels correspondent diogu motus and he gave us more details on the deal. right this rescue plan basically consists of 3 safety nets 1st of all there is the money that comes from the european bailout fund the 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 i wanted to clarify when he was asked why this has taken so long as 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

but i think corona-bonds, how you call it, is unlikely. harr from danske bank stays with us. coming up, we hear what the boston fed president had to say about when we can expect the coronavirus lending plan for small and medium-size businesses -- we discuss more on the markets next. this is bloomberg. ♪ ♪ manus: good morning from bloomberg middle east headquarters. daybreak era. your top stories this thursday morning -- u.s. stock futures rise after the s&p's worst drop in two weeks. new york and new jersey debt doubled in three days. u.s. officials suggest china concealed the extent of its outbreak. bank of america's ceo expects the u.s. economy to bounce back quickly after the crisis. today's u.s. jobless claims could post an even bigger number than last week. italy's death rate eases as growth in new cases moderates, but for tallies continue to rise in spain and the u.k. and france proposes an economic rescue fund to fight the fallout. to the market, repercussions as we wake up this thursday morning. an extension of shutdown and europe,

question is what kind of solidarity and there's this sense that this idea of debt mutualization corona bonds is the lingo that's been spreading around europe is is a step too far for germany that this would be seen by many as a slippery slope towards kind of having joints debt for the entire operation of the euro zone but there is a bit of a glimmer of hope that there may be some room for compromise around a proposal that has come from spain and the idea from spain is that the european commission could borrow money on the international markets on the basis of the european budget and borrow it extraordinary long terms even perpetual debt debt that never actually gets paid back but just the interest is rolled over now there's a lot of debate around this but it does look like there could be some room for compromise around that at the same time the european council's been careful to lower expectations about massive breakthrough coming out of tonight's summit they're saying they won't even necessarily be a joint statement they'll just be a statement from the european council president and most li

our corona bonds the way that europe needs to resolve the current crisis -- are corona s the way that europe needs to resolve the current crisis? >> well, this is a typical problem which absolutely requires a collective response, both nationally and internationally. you are only as healthy as your neighbors, so i do think that this would have been a fantastic inortunity for europe to some ways test what it has intended in the past with an experiment that people's lives absolutely rely on. but we have not had these eurobonds implemented in the past at the right times. at this moment of urgency, it would be the time. the problem is unless you really understand the kind of european fiscal and monetary situation as one that is required to foster, not just economic growth, but really going back to the whole origin of why we set up the european project, which is one of solidarity and peace, that it is very hard in times of crisis to get that kind of action quick. it doesn't happen, professor, if we do not get some sort of common approach, are we going to end up -- and i keep asking this que

whereis a scenario european governments could issue a perpetual, call it a corona bond, and the ecb could buy that and have it on the books, and ultimately even write off that bond. that would be a very extreme case solution, but it would be a solution, and i think that is the mindset. vonnie: the news overnight is -- thatks are allowing they are allowing -- that the fed is allowing banks to lower their leveraged rate. would anyone be excited by that idea? padhraic: every time the fed comes out with new measures, it does help. there's no doubt about that. it helped for the money market funds. the way the fed provides help to money market funds is they literally rent space on bank balance sheets without regulatoryg their rates. it happened overnight is another example of that. so it helps. the banks are under a bit of pressure because they need to abide by the rules of engagement that came out of the great financial crisis. what we are seeing from the fed and from europe as well is a loosening of these rules. you don't want to throw them out the window, but you want to facilitate a process

hard hit 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 status as a good would be not acceptable to the north of iraq 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 dead joint debt issuance should be feasible french finance minister lemaire already floated the idea for a common fund and dutch prime minister who to also has a plan one offering grants to those in need rather than a no. plenty of material for an outside the box solution whatever is agreed by the finance ministers goes to your leaders for another video conference later in the month i'm now joined by fabio demasi he's a

to do more to ease access to financial markets by creating your bonds or corona bonds as they are beingalled. other nations are opposed to this idea. talks on tuesday night failed and the pressure is on for e.u. finance ministers to do a deal on thursday. >> spain versus the netherlands, rome versus berlin. the german government believes existing tools are enough to protect the block from ececonomc collapse. they include using hundreds of millions o oeuros in bailout funds parked in what is knonowns the european stability mechanism to sure up struggling member states and a 200 -- a credit line at the european investment bank for struggling small and medium-size companies. the netherlands is backing that position. we have come far, but we are 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 to 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 are cal

the bad news is, the divisive issue of corona bonds. good news is, n nesters will only have to file a list to state leader -- ministers only have to file a list to state ministers brent:. it makes you wonder, how -- the 3% of gdp budget deficit rules, that has been thrown out the window. who is to say the same thinking is not going to apply to euro bonds? is there anything keeping these rules in tact? >> limits on public borrowing have been scrapped more than three weeks ago. there is no more rules on state aid for companies. i remember the two of us talking during the use summit over the key issue of how important the stability pact is. now, all of this is history. what the you tries to do hereres not only provide -- what the you tries to do is provide reassurance to the world to show europe is prepared to take all of the measures that are needed to support the european economy. brent: it seems like a different world we were talking during the summit. thank you. here are some of the o other headliness that are making news ththis hour.

over the possible of- fooling the deaths of member states through corona bonds. one second please what those are and why it's it is requesting. eight there are differences in viewews regarding how long we have to solve and address the health of the economic crisis but everybodody agrees that this is an unprecedented crisis what we're asking for today is that we define instruments that don't necessarily have to be called corona bonds or eurobonds but that will allow us to set. up the market conditions that will allow all members states to spend what it takess to o help their fellow citizens. and we're not asking any other country to pay for our debt we always lived up to our commitments twenty nine did we had done a targeted- deficit at two point 2% we clocked. in atat one pointnt. what's your really important day is we have to be. we add. a novels. with all instruments is to prepare to leave the eu if your request is in. current circumstances that have to be very that. and italy. c. i. two if country falls kind will there is there can be no you'r're union we fran

anna: how long will it take for individual governments to approve a corona bond? existing infrastructure to pull risks in the eurozone? this is why people talk about and use that as a credit line for countries in trouble rather than embarking on something new that could get locked down in politics? there will beree technical and legal issues to be sold. has shownsion flexibility when it comes to coming up with new structures on short notice if needed. having said this, i agree it is existing --credit lines would add to the sovereign debt, and that is the big issue. in instabilitylt further down the road. and the problem is even though you can say it is not an issue now, there are heavier things to do, the market has anticipated that. to have the exact structures, sending the signal that the eurozone and the european union stands ready to , not justs members the ecb on the fiscal side, that is the critical signal we need now. matt: a great signal for europe, but difficult for merkel to send in this environment. if merkel backs get in europe, gain a the far right hu

here in germany that are pushing the drugs government urging the government to agree to these corona bonds as they are called but we have to caution that it's not a matter of germany giving money we are talking here about loans that are to be issued and about germany and other countries all countries in the european union guaranteeing those loans has not actually money that's being kind of pushed across the table it's a guarantee for loans but because the german economy is by far the strongest in europe if these loans should end up not being repaid or in some sense getting difficult it will be germany that ends up in some sense guaranteeing these loans together with other countries so it's that guarantee that the germans are concerned about the german foreign minister and to the economics minister have recently published opinion pieces in the series of european newspapers offering their alternative they're saying that a common european stability mechanism which is already in place should be used and that the rules for the for giving that money to various countries should be relaxed so germ

than 83000 with almost one pandemic began has eased travel districts seems to abuse so-called corona bonds which are favored by germany. but he got bad good to see you failing why the impact to finance ministers their 5 fanny pack that's the truth and everything right now because they want the new conditions on your credit line and now and now and for that recovery plan they know big threat is this to the european union as a whole union as a whole the european union because so dirty as a concept this is. at the brink of failure then then we don't in brussels thanks so much for that. the world on time in living memory predicts that world fade could drop by almost a living memory predicts that world fade could drop by almost a 3rd of this year in the months ahead. off during april the coronavirus epidemic has had its. but aid but aid organizations warn of the province where over 3000000 people has been keeping in touch with people in need keeping in touch with people in need lives like to live in a live in confidence will resume. for weeks now 26 year old child city in syria where the corona

merkel in the bundestag on thursday morning turned into well it german attitude changing towards corona bonds and debt sharing across the block across the e.u. that is in the wake of the coronavirus. in italy the number of corona virus cases has now surpassed 187000 more than 25000 people have died but the nation's spirits have also been cheered by some remarkable recovery on wednesday a 100 year old woman was discharged from hospital in northeastern states away after beating kovac 90 she's one of a number of italian centenarians who have beaten all the odds during the time demick but there are many more remarkable tales of recovery of young pierre campbell let's see is a former coronavirus patient who had to be put into intensive care he told us how terrifying the experience was. a lethal war in the beginning i viewed it as a negative positive later when the situation worsened i realized that the coronavirus is truly a monster and that's when the fear and terror started i quickly went into respect retreat crisis doctors informed me they would have to interview me at this point i called my wi