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| E.U. Backs Half-Trillion Euro Stimulus, but Balks at Pooling Debt | E.U. Backs Half-Trillion Euro Stimulus, but Balks at Pooling Debt |
| (about 16 hours later) | |
| BRUSSELS — European Union finance ministers agreed Thursday night to a plan calling for more than half a trillion euros worth of new measures to buttress their economies against the onslaught of the coronavirus, but dealt a blow to their worst-hit members, Italy and Spain, by sidestepping their pleas for the bloc to issue joint debt. | BRUSSELS — European Union finance ministers agreed Thursday night to a plan calling for more than half a trillion euros worth of new measures to buttress their economies against the onslaught of the coronavirus, but dealt a blow to their worst-hit members, Italy and Spain, by sidestepping their pleas for the bloc to issue joint debt. |
| Even in the face of an unprecedented economic crisis caused by a virus that has killed more than 50,000 bloc citizens and infected over a half million, wealthier northern European countries were reluctant to subsidize cheap debt for the badly hit south. | Even in the face of an unprecedented economic crisis caused by a virus that has killed more than 50,000 bloc citizens and infected over a half million, wealthier northern European countries were reluctant to subsidize cheap debt for the badly hit south. |
| And while Germany, the Netherlands and others showed greater generosity than they had in previous crises, the details of the measures announced showed they had gone to great lengths to limit and control the way the funding is used. | And while Germany, the Netherlands and others showed greater generosity than they had in previous crises, the details of the measures announced showed they had gone to great lengths to limit and control the way the funding is used. |
| The programs the finance ministers agreed to recommend to their countries’ leaders for final approval included a €100 billion loan plan for unemployment benefits, €200 billion in loans for smaller businesses, and access to €240 billion in loans for euro-area countries to draw on from the eurozone bailout fund. One euro is equal to about $1.09. | The programs the finance ministers agreed to recommend to their countries’ leaders for final approval included a €100 billion loan plan for unemployment benefits, €200 billion in loans for smaller businesses, and access to €240 billion in loans for euro-area countries to draw on from the eurozone bailout fund. One euro is equal to about $1.09. |
| But the ministers were not able to reach an agreement on issuing joint bonds, known as “corona-bonds,” despite pleas from the leaders of Italy and Spain, which are bearing the brunt of the crisis, after staunch resistance from Germany, the Netherlands and others. And, in a victory for the Netherlands which was lobbying to restrict how the bailout funds can be used, the ministers decided they should be limited to health-related programs. | But the ministers were not able to reach an agreement on issuing joint bonds, known as “corona-bonds,” despite pleas from the leaders of Italy and Spain, which are bearing the brunt of the crisis, after staunch resistance from Germany, the Netherlands and others. And, in a victory for the Netherlands which was lobbying to restrict how the bailout funds can be used, the ministers decided they should be limited to health-related programs. |
| Throughout its history, the European Union has refused to issue joint bonds, but the size and scope of the current crisis had led some analysts to think the bloc might be willing to back the idea this time, which would have represented a major step in bringing it closer to becoming a United States of Europe. Pooling debt was foundational to the creation of the United States, and it would be considered a momentous step in the bloc’s governance structures moving toward federalism. | Throughout its history, the European Union has refused to issue joint bonds, but the size and scope of the current crisis had led some analysts to think the bloc might be willing to back the idea this time, which would have represented a major step in bringing it closer to becoming a United States of Europe. Pooling debt was foundational to the creation of the United States, and it would be considered a momentous step in the bloc’s governance structures moving toward federalism. |
| But the need for unanimous backing of major measures — always a brake on swift and bold decisions by the European Union in times of crisis — derailed the bond idea and meant that negotiations for the shape of the economic package were fraught. It took a second meeting to build consensus, after an attempt on Tuesday ended in acrimony. | But the need for unanimous backing of major measures — always a brake on swift and bold decisions by the European Union in times of crisis — derailed the bond idea and meant that negotiations for the shape of the economic package were fraught. It took a second meeting to build consensus, after an attempt on Tuesday ended in acrimony. |
| The finance ministers were well aware of the dramatic toll the virus was taking on all the bloc’s economies and that a failure to produce an agreement would be disastrous for the confidence of both the bloc’s citizens and for financial markets. As the United States moved to announce stimulus measures, there was a growing sense that Europe was once again doing too little too slowly. | The finance ministers were well aware of the dramatic toll the virus was taking on all the bloc’s economies and that a failure to produce an agreement would be disastrous for the confidence of both the bloc’s citizens and for financial markets. As the United States moved to announce stimulus measures, there was a growing sense that Europe was once again doing too little too slowly. |
| “The most important thing for the finance ministers was to sign off on a deal and a €540 billion tagline,” said Mujtaba Rahman, the head of Europe practice at Eurasia Group, a consultancy. “But despite everyone patting themselves on the back, there are lots of substantive gaps in the deal that will only become apparent later down the line,” he added. | “The most important thing for the finance ministers was to sign off on a deal and a €540 billion tagline,” said Mujtaba Rahman, the head of Europe practice at Eurasia Group, a consultancy. “But despite everyone patting themselves on the back, there are lots of substantive gaps in the deal that will only become apparent later down the line,” he added. |
| At stake is the recovery of the world’s richest bloc of nations, including the eurozone’s 19 members whose currency is one of the most important globally. | At stake is the recovery of the world’s richest bloc of nations, including the eurozone’s 19 members whose currency is one of the most important globally. |
| A failure by the European Union to help its most affected members would hurt not just its economies, but also affect regional politics and societal attitudes, and cause the bloc to lose clout on the world stage. | A failure by the European Union to help its most affected members would hurt not just its economies, but also affect regional politics and societal attitudes, and cause the bloc to lose clout on the world stage. |
| While the half-trillion euro figure, together with each individual country’s national stimulus programs, is a sizable sum, it is still hard to assess whether it will be nearly enough to help European economies withstand the fallout from the health crisis and achieve any sort of growth as economic activity is gradually resuscitated. | While the half-trillion euro figure, together with each individual country’s national stimulus programs, is a sizable sum, it is still hard to assess whether it will be nearly enough to help European economies withstand the fallout from the health crisis and achieve any sort of growth as economic activity is gradually resuscitated. |
| The bloc’s wealthier countries may have thwarted the joint bonds, but, inevitably, rescue packages for the worst-hit economies will involve subsidies from the richer north to the poorer south, a recurrent, toxic theme in the bloc’s history. | The bloc’s wealthier countries may have thwarted the joint bonds, but, inevitably, rescue packages for the worst-hit economies will involve subsidies from the richer north to the poorer south, a recurrent, toxic theme in the bloc’s history. |
| While all countries agreed on Thursday that there should be “solidarity” with the worst-hit countries, and that the European economies are so deeply integrated that rescue packages are helpful to all, the shape of that solidarity proved deeply contentious. | While all countries agreed on Thursday that there should be “solidarity” with the worst-hit countries, and that the European economies are so deeply integrated that rescue packages are helpful to all, the shape of that solidarity proved deeply contentious. |
| For Prime Minister Giuseppe Conte of Italy, the deal Thursday will be a tough sell: He has passionately advocated joint debt issuance and demanded easier access to the eurozone bailout fund to support his country’s recovery. He got neither. | For Prime Minister Giuseppe Conte of Italy, the deal Thursday will be a tough sell: He has passionately advocated joint debt issuance and demanded easier access to the eurozone bailout fund to support his country’s recovery. He got neither. |
| The joint bonds would raise borrowing costs for the wealthier, more frugal northern countries, whose leaders worry such a move could fuel anti-E.U. populist forces within their borders. They argue that, by treaty, every member nation of the European Union is responsible for its own finances. | The joint bonds would raise borrowing costs for the wealthier, more frugal northern countries, whose leaders worry such a move could fuel anti-E.U. populist forces within their borders. They argue that, by treaty, every member nation of the European Union is responsible for its own finances. |
| But anti-European sentiment is also on the rise in Italy and Spain, the bloc’s third- and fourth-largest countries and economies, and the two E.U. nations hit hardest by the virus. Outrage and despair over thousands of deaths have fueled a feeling that Europe is not helping them in their hours of need. | But anti-European sentiment is also on the rise in Italy and Spain, the bloc’s third- and fourth-largest countries and economies, and the two E.U. nations hit hardest by the virus. Outrage and despair over thousands of deaths have fueled a feeling that Europe is not helping them in their hours of need. |
| The political infighting among the bloc’s leaders and ministers, roughly tracking the battle lines of previous crises that cast northern members against southern ones, is threatening to spawn another wave of euroskepticism and populism. | The political infighting among the bloc’s leaders and ministers, roughly tracking the battle lines of previous crises that cast northern members against southern ones, is threatening to spawn another wave of euroskepticism and populism. |
| Updated June 16, 2020 | Updated June 16, 2020 |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| The European Union, already battered over the past decade or so by a major financial crisis, the migration crisis and Brexit, can ill afford failing its members and letting questions over its usefulness spread deeper. | The European Union, already battered over the past decade or so by a major financial crisis, the migration crisis and Brexit, can ill afford failing its members and letting questions over its usefulness spread deeper. |
| The recession that the eurozone will experience because of the coronavirus is set to be brutal: Economists predict the bloc’s output is likely to shrink this year by around 10 percent. By contrast, the recession that followed the last financial crisis was, at its worst year in 2009, 4.5 percent in the eurozone. | The recession that the eurozone will experience because of the coronavirus is set to be brutal: Economists predict the bloc’s output is likely to shrink this year by around 10 percent. By contrast, the recession that followed the last financial crisis was, at its worst year in 2009, 4.5 percent in the eurozone. |
| This week brought home just how bad things are getting in some of the region’s most important economies. New data released Wednesday showed that the French economy, the region’s second-largest, shrunk by 6 percent between January and April compared with the last quarter of 2019, the worst performance in half a century, and is now formally in a recession. | This week brought home just how bad things are getting in some of the region’s most important economies. New data released Wednesday showed that the French economy, the region’s second-largest, shrunk by 6 percent between January and April compared with the last quarter of 2019, the worst performance in half a century, and is now formally in a recession. |
| And in Germany, the Continent’s leading economy, five major institutes predicted the second quarter of this year would bring a 10 percent recession. For Italy and Spain, things could be worse still, with UniCredit predicting a 15 percent recession in each. | And in Germany, the Continent’s leading economy, five major institutes predicted the second quarter of this year would bring a 10 percent recession. For Italy and Spain, things could be worse still, with UniCredit predicting a 15 percent recession in each. |
| Paolo Gentiloni, the European commissioner for the economy and a former Italian prime minister who is an advocate for a special coronavirus fund and joint corona-bonds, said that Thursday’s measures were not the final word in Europe’s collective economic response. | Paolo Gentiloni, the European commissioner for the economy and a former Italian prime minister who is an advocate for a special coronavirus fund and joint corona-bonds, said that Thursday’s measures were not the final word in Europe’s collective economic response. |
| The fund was mentioned vaguely near the bottom of the ministers’ conclusions as a “recovery fund” to be discussed further by European Union leaders next week. | The fund was mentioned vaguely near the bottom of the ministers’ conclusions as a “recovery fund” to be discussed further by European Union leaders next week. |
| “This is not the end of the road. Thousands of European citizens are still fighting for their lives,” Mr. Gentiloni said. | “This is not the end of the road. Thousands of European citizens are still fighting for their lives,” Mr. Gentiloni said. |