Brussels Edition: Pandemic Credit Lines

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

It’s time to talk “pandemic credit lines.” Euro-area finance ministers will today seek a first agreement on such a facility from the bloc’s bailout fund, which could be made available to any or all countries that need them. Such arrangements could ease pressure on sovereign bonds and pave the way for the ECB to buy vast amounts of debt through its Outright Monetary Transactions program, amounting to a proper bazooka to stem the fallout from the viral outbreak. But the devil is in the detail, and key issues such as how to avoid the stigma of such aid, what strings will be attached as well as the total amount to be made available remain contentious. Still, with pressure mounting on the euro area to do more in the face of a steep recession, finance chiefs can ill afford not to act — even if they leave the final decision to their leaders.

What’s Happening

Virus Update | Italy’s lockdown finally seems to be paying off, as the latest figures show the number of new cases is going down. Boris Johnson got the memo, and he’s now imposing the same restrictive measures as European countries to slow the illness, leaving Sweden one of the few holdouts where life continues more or less as normal.

Welfare States | Europe’s social model is getting a rare pat on the back from economists for its ability to act as a shock absorber during the coronavirus crisis. Often derided for its rigidities that act as a brake on growth, here’s how the outbreak is suddenly revealing its hidden virtues.

Balkan Road | A hard-fought, finely balanced diplomatic accord to unblock the EU membership path for North Macedonia and Albania is due to be scrutinized by general-affairs ministers in a video conference today. Officials are guardedly optimistic that a deal to start accession negotiations will get a green light, repairing the political damage caused by France’s veto in October.

Another Crisis | Some climate-related health crises, like heatwaves, have overwhelmed hospitals, much like the coronavirus, Eric Roston reports. Once the Covid-19 emergency ends, the global public-health community and the world population that depends on it will have to finally face their biggest challenge: our dangerously ill planet.

In Case You Missed It

German Stimulus | Germany plans to take on billions in new debt as part of an unprecedented package totaling more than 750 billion euros to cushion the fallout from the coronavirus pandemic. As the devastating implications of the viral outbreak become clear, Angela Merkel’s coalition is abandoning a long-standing commitment to balanced budgets.

Teaming Up | European competition watchdogs gave businesses the go-ahead to team up with rivals to maintain supplies of vital goods amid the pandemic — but warned firms that price-gouging of products such as hand-sanitizer gel and face masks won’t be tolerated.

Illiberal Rule | Hungarian opposition parties rejected fast-tracking a government bill that would give Viktor Orban the power to rule by decree indefinitely, arguing that it risks paving the way for the end of democracy in the country. But the proposal, made after independent media reported purported inconsistencies in the cabinet’s crisis management, will likely pass next week. 

Cleanest Room | A two-hour drive south of Amsterdam in Veldhoven, there’s one company whose staff has to work in what is probably the world’s cleanest room. And as the coronavirus grips the world, this might just be the safest place to work right now. 

Chart of the Day

As many people across the globe move to home offices to slow the coronavirus spread, they’re starting to work longer. According to data from virtual private network service provider NordVPN Teams, people in the U.K., France, and Spain have extended the work day by an average of two hours, with many people starting work earlier than usual. 

Today’s Agenda

All times CET.

• 6:30 p.m. Video conference of the Eurogroup
• 10:00 a.m. Informal video conference of EU’s ministers for European affairs
• 11:30 a.m. German Economy Minister Peter Altmaier gives news conference on economic impact of the coronavirus
• U.K. Chancellor of the Exchequer Rishi Sunak is due to take questions in the House of Commons

©2020 Bloomberg L.P.