Brussels Edition: Holding Fire

(Bloomberg) -- Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

After the ECB did the heavy lifting (again), the pressure on governments to do more to cushion the economic shock from the viral outbreak has eased. Accordingly, a call of euro-area finance ministers last night produced no fireworks. It’s now up to leaders convening tomorrow to agree that the bloc’s bailout fund will make credit lines worth up to 2% of each country’s GDP available, if needed. More radical proposals such as joint debt issuance in the form of coronabonds, which received a strong push from ECB President Christine Lagarde, have failed to garner sufficient support. Even in the midst of such an unprecedented crisis, not everyone feels they are in the same boat. 

What’s Happening

Virus Update | Spain recorded its highest daily increase in deaths so far, while Italy also saw a rise in fatalities after two days of declines. Ireland introduced new curbs and extended existing restrictions, as the government warned that more 400,000 jobs are at risk. The survival of the airline industry is under threat, and the  global economy is crashing. 

Foreign Lessons | As lockdowns spread across the world, we can already draw some early lessons on how effective the measures were that Italy, South Korea and other nations adopted against the new coronavirus. Here is how four countries have managed the outbreak so far — what worked, and what didn’t. 

Eastern Benefits | For Europe’s east, there may be an upside from the havoc wreaked on global supply chains by the coronavirus. The cutoffs may prompt companies in Western economies to safeguard against future issues by securing back-up capacity closer to home — and Eastern Europe is well positioned to benefit.

Recession Explainer | With the sudden cessation of economic activity across the globe, talk about the next recession has shifted from whether and when, to how long and how bad. It’s been some time since we last had a recession in Europe, so here’s everything you need to know as we head into one. 

In Case You Missed It

Crashing Market | The world’s biggest carbon market is joining the long list of victims of the economic fallout from the coronavirus. The price of certificates allowing companies to emit carbon dioxide in the EU has crashed, meaning the carbon market risks losing its force as a tool for helping the environment. 

Green Recovery | Europe should ensure that its economic recovery after the pandemic is matched with the objectives of its Green Deal strategy to become the world’s first climate-neutral continent, according to a senior EU official. But considering the urgency of the crisis, it’s doubtful policy makers will consider whether their stimulus measures are green. 

Enlargement Path | The EU unblocked the membership path for North Macedonia and Albania, restoring its Balkans enlargement strategy after overcoming a French barrier. The entry process gives EU governments wide scope to determine the pace, so don’t expect the two nations to join the bloc anytime soon. 

Fake Medicines | From miracle cures to fake sprays, the EU’s law enforcement arm helped spearhead a global crackdown on gangsters peddling a “staggering amount” of fake products online linked to the Covid-19 virus. The action comes as consumer and antitrust agencies also target firms seeking to rip off shoppers with massive price increases for scarce items. 

Chart of the Day

As the coronavirus death toll surges across much of Europe, one country remains an anomaly. Germany’s mortality rate is only 0.4% of confirmed cases, a fraction of Italy’s 9.5%. The reason is that Covid-19 has not yet hit as hard among the oldest and frailest members of Germany’s population. 

Today’s Agenda

All times CET.

• 11 a.m. Eurostat to release reading on international trade in goods in 2019
• 2 p.m. EU agriculture ministers hold a video call
• G-7 foreign ministers hold a video conference
• Commission President Ursula von der Leyen and Industry Commissioner Thierry Breton hold an evening video conference with business representatives on retooling production for medical equipment needed to fight the coronavirus

©2020 Bloomberg L.P.