(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.
How much cash is the European Union really stumping up to rebuild the economy after the pandemic? The answer depends on whether you count genuine money, borrowed money or theoretical money. We’ve delved into the details of the smoke and mirrors involved in the concept of leverage, which Commission President Ursula von der Leyen acknowledges will play a part in her coronavirus recovery plan. A draft commission blueprint leaked earlier this month contained a hefty dose of alchemy as it promised to “generate” 2 trillion euros of investments on the back of 320 billion euros of borrowing on financial markets, without explaining how it will bridge the gap.
What’s Happening
Virus Latest | France unveiled measures to begin easing a strict lockdown and reignite an economy battered by the coronavirus, with plans to reopen shops starting May 11. Spain aims to remove most curbs on daily life and return to a “new normality” over the next eight weeks while Greece announced the gradual lifting of restrictions from May 4. Here’s the latest.
Calmed Markets | The European Central Bank’s response to the coronavirus has calmed markets while setting it on a path that could test its commitment to the mission to keep prices stable. With governments struggling to agree on joint fiscal action, President Christine Lagarde and her colleagues have ramped up bond-buying of vulnerable nations, soothing investor concerns over the cost of fighting the pandemic.
Unsafe Havens | Tax-dodging corporations with outposts in offshore havens risk being left high and dry when EU countries hand out vast bailouts to companies devastated by the pandemic. A growing number of governments said they may exclude companies based in the Cayman Islands, Panama, the U.S. Virgin Islands and other states on an EU blacklist of “non-cooperative jurisdictions for tax.”
Passenger Power | A meeting of EU transport ministers today may be the last hurrah for those pushing to shore up airlines by scaling back the right of travelers to refunds for canceled flights. Transport Commissioner Adina Valean is opposed, saying governments have latitude to aid airlines — including by making travel vouchers offered by carriers more attractive.
In Case You Missed It
Air Drama | Lufthansa, locked in tense negotiations over terms of a multibillion-euro state bailout, is considering court protection as a last resort if it fails to reach a deal with the German government, according to people familiar with the matter. The move would shield Europe’s biggest airline from creditors for three months while working on a management-led restructuring plan.
Seeing Positives | Italian Prime Minister Giuseppe Conte hailed the near-completion of a new bridge in Genoa following the accident in 2018 that killed 43 people as a model for restarting the country. Workers at the construction site, which has stayed open through weeks of virus containment measures, lifted the last steel section into place for a new viaduct due to open this summer.
Airline Jobs | British Airways will slash 12,000 positions — almost 30% of its workforce — in a painful restructuring aimed at shrinking the airline to make it through a downturn that could last for years. Meantime, Scandinavia’s biggest network airline, SAS, is eliminating as many as 5,000 jobs. The Stockholm-based company said it needs to prepare for what may be years of sluggish demand.
Bank Relief | European banks are getting a big break on leverage limits as the region’s policy makers look to keep credit flowing to the economy during the coronavirus pandemic. The EU Commission’s latest plan could help support 450 billion euros in additional lending.
Chart of the Day
France’s economy is set to shrink by 8.6% this year in Bloomberg Economics’ forecast, and that assumes the pandemic is brought under control and government support limits any lasting damage. The real danger is that the administration does too little or that support fails to reach those who need it.
Today’s Agenda
All times CET.
3:30 p.m. Transport ministers hold video conference
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