Claim your bonus gift: give any amount to get 4 KaiPA coasters! Donate today
Fallout: The Financial Crisis

Stimulus package in motion for E.U.

Stephen Beard Nov 20, 2008
HTML EMBED:
COPY
Fallout: The Financial Crisis

Stimulus package in motion for E.U.

Stephen Beard Nov 20, 2008
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: Some love for Iceland today from its “neighbors.” Finland, Sweden, Norway and Denmark said they would lend Iceland $2.5 billion to help it recover from economic meltdown. The IMF will pitch in another $2 billion. And members of the E.U. are drawing up plans for a stimulus package for all of Europe. From London, Stephen Beard reports.


Stephen Beard: The European Commission presents its plan next week. The signs are that it will call on the E.U.’s 27 member states to unleash a concerted fiscal blitz.

The Commission wants them to spend at least 1 percent of their GDP, either on tax cuts or extra public expenditure. That’s a total of around $160 billion — the same size as America’s first stimulus package earlier this year.

Europe’s action is belated but necessary, says Phillip White of the Center for European Reform:

Phillip White: Europe has been conning itself for much of the past year that it would be insulated from this economic storm. But I think now it has actually woken up to the fact that it is heading for a very nasty recession.

He believes the E.U. economy as a whole will shrink by up to 2 percent next year. Some member states could fare even worse. Ireland is forecast to contract by a hefty 4 percent.

In London, this is Stephen Beard for Marketplace.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.