On Wednesday 6 May 2020 the European Commission expected. A serious delay of 7.7% in the Eurozone economy this year, and all this because of the Coronavirus pandemic, inflation will dissipate, debt will widen, the budget deficit will be, and will be the largest recession in the economy in history.
Economic stagnation in history The European Union European
Commissioner for Economic and Financial Affairs “Paolo Gentiloni” said, by letter, Europe is experiencing an enlarged economic recession that you have not seen since the Great Depression, adding his words that isolation measures must be lifted because the importance of the economy is higher than anything else and we start with the most important services such as tourism and financial resources as I indicated the European Commission said inflation would slow to 0.2% in 2020 before rising to 1.1% in 2021
At that time the eurozone will return to a rate of 6.3%, while investments will decrease 13.3% in this year, and a deficit in the euro area will be 8.5% of GDP this year, and the deficit in the year 2021 could return to the ratio of 3, 5% affected countries in the European Union
Among the most affected countries
Italy, Spain, Portugal, and Greece, these countries will know that the economy has been affected by the Corona pandemic. In contrast, Luxembourg, Malta, and Austria will bear the damage compared to the previous countries.
The alternative plan
the European Commission, “Ursula Von” revealed an emergency plan that will save the European Union, as it told French Radio 1 Europe that the member states made a mistake at the beginning of the pandemic when they were satisfied with self-isolation and that this plan will not succeed if not everyone fully solidifies the member states since the beginning of the crisis.
She is thinking of her own problems only and the time has come to be one hand and solidarity to get rid and fight the pandemic, stressing that if they solidarity, they will emerge from this crisis stronger than before and that there is an urgent and new plan called the “New Marshall Plan” that will be discussed and discussed in the near future.
Saudi Arabia and its huge projects are fully affected
A while ago I entered Saudi Arabia. In a race to diversify its financial sources, it depended entirely on oil, so Riyadh came up with some future plans for the 2030 vision in the most prosperous years of the economy, so it planned for the largest project that would combine advanced economic activities that would be based on technological innovation, and this huge project was called “Nayum” which Riyadh monitored finance of five hundred billion dollars.
But due to the global crisis that the world entered through the Coronavirus, oil retreated, and Saudi revenues, as well as religious tourism, which also played its role in increasing the crisis. As a result of these reasons, Saudi Arabia reduced its budget by 5%, i.e. 13.3% billion dollars, and the country is dealing with austerity measures and the plans for the huge “NEOM” project will be known to be underdeveloped later.
But in contrast, the German researcher, “Stefan Roll” saw that there are factors that may play for Saudi Arabia in light of these conditions in the coming period, and he stated that there are three basic factors
- First: Saudi Arabia’s expansion in the oil market.
- Second: Its external religious share is low compared to other countries.
- Third: Sovereign wealth can play a role in achieving profits through smart investments in the international capital market, but risks remain the highest opportunities in Saudi Arabia due to the lack of strong planning and no control over the reckless centers of power, therefore, the country is highly vulnerable to a future crisis with a weak economy …