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As Europe stares down the barrel of a major economic contraction due to the pandemic, how can the continent get its workers and businesses back on their feet? How much money will have to be spent on the recovery and where will the funds come from? Catherine Nicholson speaks to the head of the eurozone’s bailout fund, Klaus Regling, who is managing director of the European Stability Mechanism.
Regling tells us he expects the coming economic crisis sparked by Covid-19 to be as severe as the Great Depression, and that he expects more than one eurozone state to apply for a loan from the ESM’s new coronavirus Pandemic Crisis Support facility, despite the stigma attached to ESM loans after the bailouts and painful austerity of the last decade.
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