for example, the european stability mechanism.u look at the debt ratio of all of the countries in europe, some of them have already reached -- before the corona of the-- a debt level crisis 10 years ago. austria came down from approximately 85% ratio to under 70%. reinstatingay of those groups and agreed mechanisms. best to try to get down debt ratio. to keep up ae growing economy, that is one of the main reasons why at that moment all the different states and countries in the european union tried to take all the measures they can to save as many companies and employees as they can. going to leave it there. we appreciate your time. minister,an finance gernot blumel. going to talke with goldman sachs head of industry research. this is bloomberg. ♪ ♪ tom: good morning everyone. we welcome all of you. seeingof relief, we are fewer deaths than what we have seen recently, the same for germany. not nearly as difficult as spain. all going on in the united kingdom, the queens speech, the prime minister is in st. thomas hospital in london

it is absolutely and if you look at the europeans in stability mechanism that is a pool of state loans but we have to say are there liabilities thresholds and it was very difficult to establish that mechanism because we have very high constitutional thresholds in germany in fact it is a big step for my party to go to give a green light to enlarge that european stability mechanism for cities but we believe that now we have to china efforts to hold the european union together and we think it's not a good way to insist on a complete utilization of the debt in specially at your mutual eyes the former dept from the past would not be. a step of solidary parity in a because those who had a know it it like for instance. or not the are or is still your or netherlands. they they would be. they would have to take that burden and do we believe that as really there it is not a one way street. there from the f.t. party thank you. here are some of the other headlines making news this hour the former senior catholic george pell has been freed from prison in australia after the high court quashed a con

finance minister of germany has said that the tough measures that usually come along with a european stability mechanism drawdown could be changed that perhaps the terms could be changed is there any situation in which you could see that the european stability mechanism could be useful. but the e.s.m. could be a vehicle through which the collective borrowing takes place but it shouldn't be the vehicle for lending to specific states as i said it would be even worse obviously and for that lending to be subject to all sorts of own risk conditions but in any case providing further lending to italy and spain is not the point they can already borrow from markets they don't need to borrow from germany and that evidence and there would be a large benefit in borrowing collectively and that is what they are demanding and that i think is the right thing economic each to really get to get your take think that graeme a financial analyst and former economic adviser to the president of the european commission. aspinall one of india's worst affected cities has been locked down with no one allowed in or out there was a

here at think billions of euros from the european vestment bank from a rescue fund the european stability mechanism and from a short time work scheme that the european commission has put up worth 100000000000 euros so these 3 things are probably in that package that has now presumably been agreed to by the ministers of big was particularly the netherlands who were concerned about the e.s.m. so the european stability mechanism conditions and they they were the one country among the 19 who said we want to stick to those 2 tough conditions if italy and spain want money from that fund and it but it appears that this route has been resolved. and briefly other strings will conditions have to be a fulfilled by country seeking aid. well remember the financial crisis when when greece was the greek economy was about to fail that was when the stability mechanism was put into place and this involved tough regulations this involved controls from brussels from from the monetary fund itself whether our own austerity is put into place why there are the risks necessary reforms in the economies are made and that is

collapse it's already been in use portugal greece and ireland all used money from the european stability mechanism. but it came with a whole load of strings a touch and that's why there's been disagreement over how this money should be distributed so back off of the financial crisis countries that were using money from this fund how to introduce a therapy measures and that was something that was quite painful for the people of those countries what they were disagreeing about this time is should there be strings attached or not because countries like spain and italy which have been hardest hit by the pun demick think this isn't our fault this is a health crisis we shouldn't have to pay up more just because we have been disproportionately affected by this other countries most notably the netherlands where say well you're still haven't really been very fiscally responsible over the last few years we don't just want to give you as much money as you want with no strings attached ok so what we're waiting to hear the details of all that and what sort of fudge has been done ok and how much does the europe

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 unprecedented and he also clarified that it is bold ambitious 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 remained 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

include using hundreds of billions of euros in bailout funds parked in what's known as the european 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 lo

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 germany is hoping in some sense to get out of this bind and still be able to help other countries that was a political correspondent hunt's brand speaking to us from a bottom of the studios in berlin here are some of the other headlines making news this hour australia's high court has overturned the conviction of cardinal george pell on child sex abuse charges the senior catholic church figure was serving a 6 year prison term but had maintained his innocence the high court found that the digital jury and an appeals court had made ben has been released from prison after serving over $400.00 days. ukrainian authorities say there has been no spike in radiation levels resulting from forest fire in the exclusion zone around the disused. an official who. has since withdrawn the state. they have identified a possible missed. prison sentence to the killer of inve

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 these are only loans is not fresh money they have to pay it back at one point the italian fine is mr roberto god here he said vincentio i have one and also the dutch finance minister. on the other side said we have fun because no there will not be any corona bones no debt issue by all member states the common debt that is fiercely debated in the e.u. this

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 solidarity solidarity but it doesn't change the fact that we've got a shared monetary policy in the eurozone but we don't have shared fiscal policy exactly and it's a big problem that's been the issue for years this is something that tried to reform years ago as late as i believe last

particularly the netherlands were concerned about the european stability mechanism conditions. they were the one country among the 19 that said we want to stick to tough conditions if italy and spain want money from the fund. it appears this has been resolved. phil: briefly, other strings, what conditions have to be fulfilled? georg: remember the financial crisis when greece was about to fail, the stability mechanism was put in place. this involved tough regulations, controls for brussels, from the monetary fund itself. whether austerities put into place, whether the necessary reforms in the economies are made. that is something italy and spain do not want to see because they. the stigma they are put in the same box as economies such as greece. phil: thank you. we will take a look at m more ws the pandemic is affefecting the global e economy. the imf says the pandemic is causing the worst economic fafaout since the great depression of the 1930's. 170 countries are e expected t o see e a decline thisis year. emerging economies will be the worst affected. russia and saudi arabia

until a merkel favors using the 2012 european stability mechanism that was used during the previous financial crisis but that is left bruno demand the french finance minister pulling his hair out saying that some countries will recover quicker than others using that route nothing would be worse for europe them for bridges states to get off to a quick starts while others who cannot afford it start slowly we all need to recover at the same speed in order to guarantee that the he's in solidarity and unity of the eurozone and our common currency to go back to that idea of more europe that anglo merkel was talking about well the european commission president is also a big fan of on the line putting forward a big european fiscal plan to try and tackle the fallout from cova one thing many are calling right now for something which is called the marshall plan well i think the european budget should be the marshall plan we are laying out together as a european union for the european people also getting on side with the wartime metaphor it's been the spanish prime minister better sanches europe has to e

european state billeted mechanism is the only option. so it is no to corona bombs yes to the european stability mechanism and investment bank i think that is the way to hope europe and at the same time to maintain the stability of the euro in the long term that response has left some in rome angry europe has enjoyed italy's political weakness for many decades italy today does not want to be a waiter while others are eating lobster is like france and germany if you plan to take advantage of the emergency to bring countries like italy or other countries with more fragile economies to their needs europe will have no future. barely old phone made a show of removing the fire from his office replacing it with the italian trick a law it's a symbolic gesture for sure but what it does show is that there are some member states that are increasingly disappointed in a union that supposed to look out for everyone's interests not being particularly forthcoming when it comes to helping those in dying in need deal not only with a pandemic but also with the economic impact it will also have peter all over r.t. girl in a. quick look at what else is happe

that that going to be difficult to to deal with but what it comes down to is using the european stability mechanism remember that infamous mechanism that supposedly help greece but 1st make greece suffer here the bigger argument is not whether one uses that or not because i think there is agreement on using that but on whether there should be conditionality in other words the germans are now on side with the french plan away it's actually the dutch that are holding out and they want real strings attached to using that mechanism whereas the italians the spaniards the french are saying no the only conditionality is that the money is used for health purposes but don't take a step but we're seeing some disagreements here what about the unity of the union that is at stake because we could we perhaps see a breakaway group led by france. i think that if the northern states not cathal. we will have a division of europe north and south basically the northern germanic states and the southern latitudes to look at the vision and talk about what about perhaps some countries we pushed into following what britain

include using hundreds of millions o oeuros in bailout funds parked in what is knonowns the european stability mechanismo 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 calling for the introduction of so-called corona bonds, which would see ember states full debt for the first time, allowing countries with bad debt to borrow money on the cheap, backed by their neighbors economic clout. i don't wantnt to point the finr at a anyone. our shared responsibility is to reach an agreement within the next 24 hours. a failure is inconceivable. but with economies on lockdown throughout that you, the clock is tic

example italy spain france as well but this helped and always will be organized by the european stability mechanism via the european investment bank all via bilateral help this is already done and this should be the focus of the german government the european union. an act has also said that health will always be the priority consider as now german business leaders and economists say it's high time for a debate on the easing of restrictions and a clear exit strategy from this containment but the government seems to think it's too early is it. well right now we can see in the german society in german businesses a high degree of agreement with the measures taken however some of the measures up to sniff as aba tree people do not understand why they can buy a bicycle in a supermarket where the bicycle store is closed so we have to avoid the discussion that leads to a situation and which more and more citizens do not agree anymore with the measures taken by the government spending and that is the reason why the discussion on easing the measures will become more intense after easter holy days this is the

that are going to be difficult to to to deal with but what it comes down to is using the european stability mechanism remember that infamous mechanism that supposedly help greece but 1st make greece suffer here the big argument is not whether one uses that or not because i think there is agreement on using that but on whether there should be conditionality in other words the germans are now on side with the french by the way it's actually the dutch that are holding out and they want real strings attached to using that mechanism whereas the italians the spaniards the french are saying no the only conditionality is that that money is used to help purposes still to come out of this our closing schools is likely to have had limited impact on the spread all right of our study suggests we have from an expert in sociology. join me every thursday on the alec simon show and i'll be speaking to guests of the world of politics sports business i'm showbusiness i'll see if that. is your media a reflection of reality. in a world transformed. what will make you feel safe from. isolation for community. are you going

1st of all there is the money that comes from the european bailout fund the so-called european stability mechanism some $240000000000.00 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 bishes 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 remained 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

european state billeted mechanism is the only option. so it is no to corona bombs yes to the european stability mechanism and investment bank i think that is the way to hope europe and at the same time to maintain the stability of the euro in the long term that response has left some in rome angry europe has enjoyed italy's political weakness for many decades italy today does not want to be a waiter while others are eating lobster is like france and germany if you plan to take advantage of the emergency to bring countries like italy or other countries with more fragile economies to their needs europe will have no future. well i'm fairly old made a show of removing the flag from his office replacing it with the italian trickle or it's a symbolic gesture for sure but what it does show is that there are some member states that are increasingly disappointed in a union that supposed to look out for everyone's interests not being particularly forthcoming when it comes to helping those in dire need deal not only with a pandemic but also with the economic impact it will also have peter all over r.t. belin. the pentagon is trying to source 10000

of thehose were some different takes on corona bonds, the european stability mechanism, and the needurope-wide fiscal response. france's proposal for a fund to boost the economy after the crisis could be 3% of the block's gross domestic product according to the finance minister bruno le maire. euro area finance ministers are comeo hold a conference to up with new proposals. reinhardt, what is your view on this subject? do you think the esm and other measures can handle this, or do you think europe needs to reach for mutual life that now -- mutualized debt now? >> there is enough money to deal with the current crisis based on up.current institution set if it is just about money, the new eu sponsored unemployment insurance fund, we can handle that. the question we probably have beyond this is a different interpretation of solitary. i think countries like spain or italy, the way they define solidarity is they do not want europe to take the next crucial step and go for full mutual is ion.n -- mutualizat countries like austria, finland, germany, might not be ready. that is a indication th

include using hundreds of billions of euros in bailout funds parked in what's known as the european 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 i was on the hill and. 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. i don't want to point a finger at anyone our shared responsibility is to reach an agreement within the next 24 hours a failure is inconceivable and shake it. but with a cond

angle of merkel favors using the 2012 european stability mechanism that was used during the previous financial crisis but that has left a brutal demand the french finance minister pulling his hair out saying that some countries will recover quicker than others using that route nothing would be worse for europe them for richard states to get off to a quick starts while others who cannot afford it start slowly we all need to recover at the same speed in order to guarantee the k. he's in solidarity and unity of the eurozone and our common currency to go back to that idea of more europe that anglo merkel was talking about well the european commission president is also a big fan of on the line putting for. with a big european fiscal plan to try and tackle fallout from covert one thing many are calling right now for something which is called this marshall plan well i think the european budget should be the marshall plan we're laying out together as a european union for the european people but also getting on side with the wartime metaphor it's been the spanish prime minister better sanches

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 germany is hoping in some sense to get out of this bind and still be able to help other countries that will do double political correspondent hans brant reporting from parliament just to do and but then you know some of the other headlines making news this australia's high court has overturned the conviction of cardinal george pell on child sex abuse charges a senior catholic judge figure was serving a 6 year prison term but had maintained his innocence the high court found that would be gentle jury and in the peace corps had made bell has been released from prison after serving over $400.00 days. ukrainian authorities say there has been no spike in radiation levels resulting from forest fires in the chernobyl exclusion zone around the disused nuclear power plant an official who. of the normal would draw on that statement police say they have identified a

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 as 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 bebo's between north and south within the e.u. so which country is ultimately have achieved what they wanted and which countries have not. but the spain italy and others have achieved easy access to cheap loans but these are only loans is not fresh money they have to pay it back at one point the italian fine is mr roberto god here he said vincentio i have one and also the dutch finance minister. on the other side said we have fun because no there will not be any ikoro no bones no debt issued by all member states the common debt that is fiercely debated in the e.u. this has

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 sealed 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 divison i see here a little bit as you know i don't believe in mutual responsibility in the current state of our political union and that's why we are rejecting that but th

times and particularly when we look now it at the kind of money 410000000000 euros in the european stability mechanism but this is also a lot about symbolism yes the. aid the financial aid is already needed but it's also about showing the world that europe is prepared to do a lot to do what it takes in order to stop a crisis from taking place and when you take a closer look at some countries the the the reason why italy's concerned about making use of this emergency found is because of the stigmatization that comes with it they would look like greece an economy that almost failed and then had to be rescued. give you've been covering the e.u. there and in brussels for many years what's your feeling is cohesion in the e.u. currently eroding in the face of this crisis or is it is that now a good time with a chance for real meaningful reform. well certainly no glorious times here under the corona crisis we've seen closed borders we've been seeing export bans on medical equipment we've been seeing countries where cricket critics say they've been taking advantage of these measures undermining democracy and

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 that for giving that money to various countries should be relaxed so germany is hoping in some sense to get out of this bind and still be able to help other countries that will do them the political correspondent hans brant from the bottom of the studio in bilin to motor racing now and formula one team bosses have met to discuss ways of protecting the sport from financial problems caused by the coronavirus with the production of the budget under consideration williams became the 3rd f one team to put their star on in force leave until the end of me while the team's drivers and executives have to take a 20 percent pay cut that follows similar moves from mclaren and recent point 8 races of the f one season have already been cancelled due to the pandemic. i never spoke to former formula one wild champion. nico rosberg he says rescuing the season require creativity without forgetting the needs of smaller teams on the circuit

100000000000 euros in a new unemployment scheme and 240000000000 euros of cheap loans from the european stability mechanism a rescue fund originally created in the greek crisis and these loans not come without any conditions in the netherlands caved in here and italy one said the italian finance minister after the deliberations all together 540000000000 euros the biggest package the union has ever made and italy and spain date they were among these countries needing the most. very urgent for those 2 nations did they get what they wanted. yes and no they get this emergency funding but the bigger issues do to be resolved the ministers agreed in principle on a new rico every fund but did not agree how big this should be to restart the european economy diving into a recession and they could also know the real how to finance this recovery plan there's still spain france and italy that say we have to issue come in debt to do that and on the other side germany the netherlands and others that say no way so the issue of so-called corona bones is not resolved bad record with a view from brussels where we have just h

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 for giving that money to various countries should be relaxed so germany is hoping in some sense to get out of this bind and still be able to help other countries speaking of relaxations the chancellor also said it's too early to set a date for the relaxation of social distancing why is germany not following austria into issuing a timed programme of dates for restrictions to be lifted. well both france and marco and members of the cabinet for instance the economics minister early this morning have been stressing that it's much too early for germany even to talk about a date when this might happen when the relaxation might happen they are emphasizing that the restrictions were in main in place at least until the 19th of april in other words 10 days or so and only when that date approaches will there start talking about possible relaxations it has to do with the fact that there's a feeling that the situation in germany is no