Both the EU and the Member States are announcing measures and successive support packages in regard to the health and social problems caused by the coronavirus outbreak as well as the economic problems to last even after the outbreak ends. IKV Chairman Ayhan Zeytinoğlu issued a statement regarding the issue. IKV Chairman Zeytinoğlu emphasised that the crisis would cause a serious economic recession and underlined the importance of protecting both businesses and employees with urgent measures. Chairman Zeytinoğlu made the following remarks:

“The effects of the coronavirus outbreak will be felt for a long time. There are risks such as slowdown in manufacturing, decline in demand, business closures and increased unemployment. The EU and the Member States have reacted by announcing comprehensive packages. This reveals the extent of the crisis and how serious measures it requires. For example, Germany launched an economic package of at least 550 billion euros to support its companies. This amount is larger than the 500 billion-euro package implemented during the 2008 economic crisis. "Unlimited" credit opportunities are put forward to keep the businesses going. In France, on the other hand, there is a delay in bank maturities with tax liabilities and social expenses, and an exceptional system is put in place, which includes a 300 billion-euro government guarantee against bank loans. In this framework, there is a 45 billion-euro emergency aid, a 32 billion-euro tax and social security support and a 2 billion-euro solidarity fund set to be used for companies within a month.”

“At the level of politicians and other macro-decision-makers, there is a tremendous determination to ‘do everything possible and more’ in order to prevent a paralysis in the economic system.”

IKV Chairman Zeytinoğlu stated that the economic effects of the coronavirus outbreak have prompted the EU and the Member States to take measures to relax the criteria foreseeing budgetary discipline and said:

“The EU and Member States have overcome the initial hesitation in tackling the effects of the coronavirus outbreak, and have started to take comprehensive measures. This crisis is an existential crisis for the EU. Whether the EU is truly united is being tested. In addition to ensuring the free movement of essential goods such as medical supplies and food in the EU internal market, it is also important to lend support to countries such as Italy where the crisis is felt the most. In the face of the coronavirus outbreak, diagnosis, treatment, provision of protective materials and strengthening of healthcare systems have been the priority. However, with the declaration of the coronavirus as a pandemic by the World Health Organisation and the epicentre of the outbreak shifting from China to Europe, the rapid increase in the number of those infected and fatalities required serious measures to be taken. The outbreak, which has caused a slowdown in manufacturing and trade starting from China -the manufacturing base of the world, triggered a serious recession in the global economy. Support packages aimed at revitalising the market, protecting businesses against bankruptcy risks, postponing tax and credit payments, and supporting employees on paid leave are among the measures taken. ”

Chairman Zeytinoğlu summarised the key elements of the adopted packages as follows:

“In the first stage, monetary resources are transferred to the system for the urgent needs of healthcare systems and the development of measures against the virus in the medium term. In the second stage, resources are provided to businesses whose activities have slowed down or have ground to a halt due to the economic slowdown. This transfer will be in the forms of urgent cash transfers, loans and grants, as well as deferral of taxes, premiums, expenses and even rents. Special arrangements will be made to maintain the level of employment. Ways to transfer resources for individuals below a certain income level will also be designed. Germany, France and the UK have allocated very large amounts for preventing the loss of employment and countering unemployment. At the EU level, very serious additional funds are created both from the EU budget and through the use of European Central Bank’s and European Investment Bank’s resources. Additional resources are provided to support the packages announced by the Member States. The macroeconomic side effects such as inflation, which will be caused by the injection of very high amounts into the market, are definitely being neglected for the time being. “At the level of politicians and other macro-decision-makers, there is a tremendous determination to ‘do everything possible and more’ in order to prevent a paralysis in the economic system. Thanks to this determination, it is hoped that the fear that dominates the markets and the society will be replaced by trust.”