EU rescue deal struck as hopes rise

BRUSSELS－The European Union has sealed a rescue package to help the hard-hit continent, as tentative signs of hope emerged that the coronavirus pandemic was peaking.

At a video conference, EU finance ministers agreed on Thursday on half-a-trillion euros ($547 billion) worth of support for the eurozone's 27 economies but put aside proposals by some countries like France and Italy to borrow common debt, or eurobonds.

It will, building on the EU budget as much as possible, allow for financial assistance of up to 100 billion euros in loans from the EU to the affected member states. The money will be used in public expenditure for the preservation of employment, acting as a second line of defense, supporting national short-time work schemes and similar measures.

The meeting also endorsed the initiative of the European Investment Bank Group to create a pan-European guarantee fund, which could support 200 billion euros of financing for small and medium-sized enterprises throughout the bloc.

In addition, the meeting endorsed a tool within the European Stability Mechanism to open a credit line to the governments of member states, at 2 percent of a country's gross domestic product.

But the deal does not mention using joint debt to finance recovery－something Italy, France and Spain pushed strongly for but which is a red line for northern European countries, such as Germany, the Netherlands, Finland and Austria. They said it could effectively mean the richer countries pay for the poorer ones.

Earlier on Thursday, Italian Prime Minister Giuseppe Conte warned that the EU's very existence would be under threat if it could not come together to combat the COVID-19 pandemic caused by the novel coronavirus.

For weeks, EU member states have struggled to present a united front in the face of the pandemic, squabbling over money, medical equipment and drugs, border restrictions and trade curbs, amid fraught talks laying bare their bitter divisions.

German Chancellor Angela Merkel earlier in the day talked on the phone with Conte and Dutch Prime Minister Mark Rutte, paving the way for the eventual agreement, which now awaits approval from the bloc's 27 national leaders in the coming days.

She said she agreed with Conte on the "urgent need for solidarity in Europe, which is going through one of its most difficult hours, if not the most difficult".

There were tentative signs of hope that the crisis was peaking in Europe, despite another horror day of the coronavirus pandemic that saw the global death toll pass 87,980.

Slight decline

European authorities said a slight decline in daily deaths and infections gave reason to hope the worst could be over.

"The fire started by the pandemic is starting to come under control," said Prime Minister Pedro Sanchez of Spain, where fatalities inched down to 683 from 757 a day before, pushing that country's total above 15,000.

"Our priority now is not to turn back, especially not to return to our starting point, not to lower our guard."

France reported that 82 fewer people were in intensive care for COVID-19－the first fall since the pandemic broke out.

But the French Ministry of Armed Forces said on Friday that 50 crew members on board the aircraft carrier Charles de Gaulle had tested positive for the virus.

Meanwhile, British Prime Minister Boris Johnson had been moved out of intensive care, his office said in a statement on Thursday.

A spokesman said Johnson "has been moved this evening from intensive care back to the ward, where he will receive close monitoring during the early phase of his recovery".

Johnson had been in intensive care at St Thomas' Hospital in London, near his residence, for three days after his symptoms worsened. He tested positive for the new coronavirus two weeks ago and at first had only "mild" symptoms.

Agencies - Xinhua