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COVID-19 situation grim in Mideast, LatAm nations, while Europe plans economic recovery

Xinhua | Updated: 2020-07-03 15:03
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A visitor wears a face mask on a weekly market, amid the coronavirus disease (COVID-19) outbreak, in Kleinmachnow near Berlin, Germany, April 23, 2020. [Photo/Agencies]

EUROPE'S RECOVERY

As European countries have been reopening their borders and easing restrictions, stimulating the impacted economy has become a priority.

Due to the lockdown measures to contain the spread of the coronavirus, the unemployment rate in the 19-member Euro area hit 7.4 percent -- a new high -- in May, according to Eurostat on Thursday.

The European Union (EU) unemployment rate was 6.7 percent in May, higher than one month before, said Eurostat, the statistical office of the EU.

The tourism industry is a vital economic driver for many countries on the European continent, such as Italy and Spain. Many countries are trying to attract foreign visitors after reopening, as the number of tourists plummeted due to lockdown measures over the past months.

German Chancellor Angela Merkel and President of the European Commission Ursula von der Leyen on Thursday pushed for an agreement on the multi-billion-euro recovery fund to cope with the economic difficulties caused by the coronavirus pandemic.

A large part of the fund, deemed vital for Europe's economic stability, would be in grants for EU member states.

The 750-billion-euro (over $840 billion) rescue package proposed by the European Commission has prompted divisions among EU governments as the Netherlands, Austria, Sweden and Denmark insist the recovery fund be only based on loans that need to be paid back later.

In a joint press conference after talking via video link with von der Leyen, Merkel reiterated the urgency for a scheme, warning that Europe is facing a difficult time and the impact of the pandemic on the economy has not yet faded.

Merkel's talk with von der Leyen was interpreted as the second vital step to rally support for the money to cushion the economic pains caused by COVID-19.

On Monday, Merkel met with French President Emmanuel Macron and announced together their backing for a "strong and efficient" recovery fund.

According to the German Press Agency, an EU summit on July 17 is set to decide on the recovery fund.

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