EU Commission: “It is now quite clear that the EU has entered the deepest economic recession in its history.”

The European Commission says the EU’s economy will shrink by 7.4 per cent this year, a recession of historic proportions. The EU economy commissioner warns that this recession “Poses a threat to the single currency, Euro and the Single Market.”

“It is now quite clear that the EU has entered the deepest economic recession in its history,”Paolo Gentiloni told reporters in Brussels. As the virus hit, “economic activity in the EU dropped by around one third practically overnight,”

“The situation is that deep, this recession risks causing different conditions, and has different consequences, in different member states.”Greece, Italy, Spain and Croatia are all set to see their economy shrink by over 9 per cent this year the worst-hit as they’re heavily reliant on tourism.

Europe’s economic powerhouse, Germany, is set to contract by 6.5% collectively, the countries using the Euro contracting by 7.7%.As countries reopened the EU as a whole is forecast to bounce back by 6.1 per cent in the following year 2021.Those Reliant tourism economies in Europe’s South are predicted to have a more significant bounce back to match their bigger initial losses.

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