Economists were expecting the speech of the European Central Bank (BCD), and it is the president, Ms. Christine LAGARDE, who was keen to reassure the markets but also the governments of the euro area.
This 30 April, Ms Lagarde stressed that the forward-looking portend a recession unseen in Europe for the year 2020. The euro zone economy could contract with a rate of recession is estimated to be between – 5 and – 12 %. This is a situation unique and of exceptional magnitude, emerging for the coming months.
A collapse of consumption and the fear of tomorrow
The 1st quarter of 2020 already marks a sad record of history, with a euro zone economy which fell by 3.8 %. AND the containment has been decided that during the month of march for the majority of countries. For the second quarter, the ECB expects a further decline of the order of 15 %.
The pandemic anxiety all economic actors, hard braking the investments of businesses and causing a collapse of consumption. All activity sectors are concerned, points out the president of the ECB.
The consequences in the chain are hard to predict, warns christine Lagarde, who insists on the impacts of inflation or deflation. Thus, if the energy prices are in net setbacks following the oil crisis that is raging, the food prices have jumped 3.6 %.
Mobilized to support the national economies, the ECB has finally announced a special budget Pandemic of 750 billion euros intended primarily to redeem the national debt, a measure to reassure the French government that constantly seeks to finance its plan of support to the national economy.