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3/20, 5:58 PM (Source: TeleTrader)
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EC announces temp suspension of EU budget rules

European Commission proposed on Friday the "general escape clause" of the Stability and Growth Pact which means a suspension of fiscal rules in order to allow member states to spend "as much as they need" to address the impact of COVID-19 to their economies.

President of the European Commission Ursula Von der Leyen tweeted: "We have promised we'll do everything to support Europeans & companies through the crisis. We deliver. Yesterday we put in place the most flexible ever #StateAid rules to help people+companies. Today we trigger the clause to relax budget rules, enabling govs to pump into the economy."

Von der Leyen pledged last week that the EU will establish a €37 billion investment initiative as part of a package of measures to soften the bloc's economies from the impact of coronavirus.

Breaking the News / TF