Published: 10:44, March 5, 2020 | Updated: 06:58, June 6, 2023
EU grants govts fiscal leeway to fight coronavirus impact
By Reuters

Volunteers of the German Red Cross (DRK) stand in front of a outpatient clinic in Stuttgart, Germany, March 4, 2020. (SEBASTIAN GOLLNOW / DPA VIA AP)

BUDAPEST/WASHINGTON/ROME/PARIS/LJUBLJANA/DUBLIN/DAKAR/ALGIERS/LOS ANGELES/STOCKHOLM/SANTIAGO/ATHENS/BUCHAREST/MEXICO CITY/OTTAWA/SARAJEVO/ZURICH/VATICAN CITY - The European Union is giving governments all the fiscal leeway they need to individually deal with the economic impact of the coronavirus and may decide on a more concerted stimulus if the economy severely suffers, officials said on Thursday.

EU finance ministers have agreed the impact of the coronavirus on EU economies was an emergency and an event outside their control

EU finance ministers discussed on Wednesday a response to the impact of the epidemic on growth as the European Commission issued a note estimating the outbreak would curb euro zone growth this year below the 1.2% forecast just weeks ago in mid-February, although it was still impossible to say by how much.

The ministers, who have ultimate control of the application of EU rules that limit government borrowing to underpin the euro, agreed the impact of the coronavirus on EU economies was an emergency and an event outside their control.

In such exceptional cases, EU budget rules, called the Stability and Growth Pact, allow governments to stop cutting deficits and public debt, and address the challenge at hand. There is no limit set in this flexibility clause.

“In general, there is political agreement that governments are free to fiscally address the emergency and we will worry about the Stability and Growth Pact later,” one official involved in the Wednesday teleconference said.

Two others confirmed that, but noted the extra spending would have to be clearly linked to mitigating the effects of the epidemic, which would be verified by the European Commission.

Switzerland reports 1st death

A 74-year-old woman in western Switzerland has died after contracting the new coronavirus, the country's first death from the virus, regional police said on Thursday.

The woman had been hospitalized in the canton of Vaud since Tuesday, police said. She was a high-risk patient suffering from chronic disease, authorities added.

In Switzerland, 58 infections have been confirmed so far.

In Switzerland, 58 infections have been confirmed so far

Swiss health authorities said on Wednesday that so far mostly young people had contracted the disease in Switzerland, but were likely to pass it on to older people who are more at risk.

France reports 2 more coronavirus deaths

French authorities on Thursday reported two more deaths linked to the coronavirus outbreak in the country, taking the total of deaths to six.

Authorities said in a statement France has also registered 92 new confirmed coronavirus cases, taking the total toll of cases to 377.

French President Emmanuel Macron agreed with US President Donald Trump to coordinate efforts to fight the coronavirus under American leadership of the Group of Seven countries, Macron said in a tweet after a phone call with Trump.

Germany cases jump by 109 cases

The number of confirmed coronavirus cases in Germany jumped by 109 within a day, a public health institute said on Thursday.

As of Thursday morning, there were 349 cases spread across all but one federal state, up from 240 on Wednesday morning and compared with 262 on Wednesday afternoon, the Robert Koch Institute said.

New cases in other parts of Europe

Ireland's health ministry said it had confirmed four new cases of COVID-19, two males and two females who recently visited northern Italy, bringing the total number of cases in the country to six.

Sweden confirmed 22 new cases of COVID-19, of which 16 were confirmed in the capital Stockholm, bringing the total number of confirmed cases in the country to 52, announced health authorities.

In the Netherlands, the number of infections has more than doubled to 82 from 38 a day earlier, the Dutch National Institute for Public Health (RIVM) said on Thursday.

Five more people have tested positive for COVID-19 in Denmark, including one in the Faroe Islands, said the Danish Patient Safety Authority.

In Romania, a 71-year-old man from northern Romania tested positive for COVID-19, becoming thus the second confirmed case of the day and the sixth so far in the eastern European country.

US House passes US$8.3b bill to battle virus

The US House of Representatives overwhelmingly approved on Wednesday an US$8.3 billion bill to combat the spread of the new coronavirus and develop vaccines for the highly contagious disease, sending it to the Senate for final passage.

Reflecting the urgency among lawmakers to address the growing coronavirus crisis, the House voted 415-2 on the bill just hours after negotiators unveiled its contents.

A Senate vote was scheduled for Thursday.

It includes money to expand testing for the virus, which has infected at least 129 people in the United States. Two more deaths were reported on Wednesday, taking the US toll to 11.

California Governor Gavin Newsom declares a statewide emergency to deal with the coronavirus, at a Capitol news conference in Sacramento, California, March 4, 2020. (RICH PEDRONCELLI / AP)

California, Hawaii declare state of emergency

Governor of the US state of Hawaii, David Ige, declared a state of emergency on Wednesday.

The emergency relief period begins immediately and continues through April 29.

There are no cases of the novel coronavirus in Hawaii to date, according to the Hawaii Department of Health.

In California, Governor Gavin Newsom on Wednesday also declared a state of emergency over the coronavirus in the state, which now has 53 confirmed cases.

California Governor Gavin Newsom on Wednesday declared a state of emergency over the coronavirus in the state, as health officials announced the first California death

Earlier on Wednesday, health officials announced the first California death from the virus, an elderly person with underlying health conditions. It was the first coronavirus fatality in the United States outside of Washington state, where 10 have died in a cluster of at least 39 infections that have emerged through community transmission of the virus in two Seattle-area counties.

The 71-year-old man who died had sailed on the cruise ship Grand Princess’ Feb 11-21 voyage from San Francisco to Mexico. He tested positive for coronavirus on Tuesday, and Placer County health officials reported his death Wednesday. 

Newsom said the cruise ship had later sailed on to Hawaii and was returning to San Francisco, but would not be allowed into port until passengers had been tested for the virus.

Six new coronavirus patients were confirmed in Los Angeles county, while the number of cases rose to 10 in New York state on Wednesday. 

Facebook Inc said a Seattle worker has been diagnosed with the coronavirus, the first known infection within the company.

Italy bishops cancel weekday masses in coronavirus areas

Italy's bishops on Thursday ordered that masses not be held during the week in churches in areas of the north of the country affected by the coronavirus outbreak, a step believed to be unprecedented.

It was believed to be the first time such a draconian step had been taken in Italy, the European country worst hit so far by the coronavirus outbreak. Masses were not even cancelled when the plague struck Milan in the 17th century.

According to a statement from the bishops conference, masses would not be held from Monday to Saturday in churches in the Lombardy, Veneto and Emilia Romagna region as well as in the provinces of Savona in the Liguria region and Pesaro and Urbino in the Marche region.

The cancellation of weekday masses was believed to be the first time such a draconian step had been taken in Italy. Masses were not even cancelled when the plague struck Milan in the 17th century.

Meanwhile, Deputy Economy Minister Laura Castelli said on Thursday that Italy may ask for a temporary suspension of European Union budget rules as it struggles to contain a coronavirus epidemic, 

Castelli told Il Messaggero daily that the government was considering increasing the amount of money it planned to spend mitigating the crisis to 5 billion euros (US$5.6 billion) from a previously announced 3.6 billion.

The total number of deaths in Italy rose to 107 on Wednesday after 28 people died of the highly contagious virus over the past 24 hours, the Civil Protection Agency said. A total of 2,706 people have tested positive for the coronavirus, according to the agency.

ALSO READ: EU council reports 1st infection, Russia suspends export of masks

On Wednesday, Education Minister Lucia Azzolina said schools and universities all over the country would be closed from Thursday until at least March 15. 

The government adopted a decree that calls for the closure of cinemas and theatres and tells Italians not to shake hands or hug each other, and to avoid "direct physical contact with all people."

It also orders all major sporting events, including top flight Serie A soccer matches, to be played in empty stadiums.

A man wearing a face mask sits at the St. Louis of the French church in Rome, Italy, March 4, 2020 as the church, which has three of the painter’s most celebrate works, reopened to the public after a temporary closure. (DOMENICO STINELLIS / AP)

Bosnia, Hungary, Slovenia, South Africa confirm first cases

Bosnia confirmed its first two cases of the new coronavirus -  a middle-aged man who recently visited Italy and his child, the health minister of Bosnia's autonomous Serb Republic said on Thursday.

Alen Seranic said the man, who returned from Italy late last month, had been confirmed earlier this week as having coronavirus. He is in a stable condition and is being kept in isolation in hospital in the city of Banja Luka.

Hungary on Wednesday confirmed its first two cases of the new coronavirus, both Iranian students in the country.

Hungary on Wednesday confirmed its first two cases involving two Iranian students in the country

Separately, Slovenia confirmed its first case of coronavirus, the Health Ministry said on its website late on Wednesday.

The patient had travelled to Slovenia from Morocco through neighboring Italy and was now in a Ljubljana hospital, national news agency STA reported.

In South Africa, a man who had visited Italy was confirmed to be the country's first case.

UK moving into 'delay' phase of coronavirus battle plan

Britain has mainly moved into the 'delay' phase of the government's four-stage battle plan to tackle the spread of coronavirus, England's Chief Medical Officer Chris Whitty said on Thursday.

The second stage, 'delay', could mean taking measures to restrict people's movements.

Britain confirmed 36 new cases on Wednesday, bringing the country's total number of infections to 87 in its biggest day-on-day increase so far, according to the country's health authorities

Whitty said that with community transmission now highly likely in Britain it looked optimistic to attempt to contain the virus.

ALSO READ: Envoy: China, UK to fight epidemic with stronger trust

Britain confirmed 36 new cases of COVID-19 on Wednesday, bringing the country's total number of infections to 87 in its biggest day-on-day increase so far, according to the country's health authorities.

Among the newly confirmed cases, 32 were in England, two were in Scotland and two in Northern Ireland.

READ MORE: G7 to deploy all policy tools to combat coronavirus


A woman wearing a face mask exits Bank underground train station in London, March 4, 2020. (MATT DUNHAM / AP)

Senegal, Algeria report new cases

Senegalese authorities reported two new cases of coronavirus on Wednesday, bringing the total to four since the first case was confirmed there on Monday.

Separately, Algeria reported nine new confirmed coronavirus cases on Wednesday, bringing to 17 the total number of people tested positive for the virus, the health ministry said.

Greece reports 10th case, shuts schools in 3 regions

Greece reported its tenth case of coronavirus on Thursday, a person related to an individual who recently travelled to Israel and Egypt, health authorities said.

Separately, health authorities dismissed media reports that a Swiss-owned cruise ship carrying 2,570 passengers and bound for the island of Corfu in western Greece, had been placed under quarantine due to coronavirus fears.

The ship owner, MSC Cruises, also dismissed the media reports that the MSC Opera cruise ship had been quarantined, saying it had received a green light from Greek health authorities to continue its journey to Corfu.

Greek authorities announced on Wednesday that all schools and universities will be closed and public gatherings should be suspended at least until Saturday in three regions.

Greek authorities announced on Wednesday that all schools and universities will be closed and public gatherings should be suspended at least until Saturday in three regions

The precautionary measures will be carried out in the regions of Achaia, Ilia and Zakynthos island, according to an e-mailed press statement by the Health ministry.

READ MORE: WHO: Coronavirus outbreak 'getting bigger'

LatAm countries ramp up measures amid rising number of cases

Member countries of the Forum for the Progress and Development of South America, commonly known as Prosur, have agreed to create a high-level committee to coordinate a regional response to the spread of the coronavirus, Chilean Health Minister Jaime Manalich said on Wednesday.

Chile's health ministry on Wednesday reported two confirmed cases, including the wife of the first confirmed patient.

Ecuador's Ministry of Public Health has so far confirmed 10 cases of COVID-19, and increased the number of people under observation for possible infection from 100 to 121.

Brazil's health ministry on Wednesday confirmed the country's third case, a patient of mild symptoms, who is quarantined at home.

Canadian military prepares for COVID-19 spread

Canada's military has shifted into a mode of "pre-pandemic planning" against the COVID-19 spread, Global News reported Wednesday evening.

According to a military order for all Canadian Armed Forces members, the military is now moving into the pandemic alert and preparedness to shield against the potential spread of COVID-19 across Canada and its ranks.

On Wednesday morning, the Canadian government announced the creation of a new cabinet committee on COVID-19.