In the light of recent events and the struggle of keeping the world’s economy afloat, new measures were taken by most of the biggest economies at a speedy pace. Coronavirus cases continue to increase in the U.S., ravaging the economy and causing disruptions to everyday life.
Tuesday, the Americans unveiled a proposal for the third Coronavirus help package. That will provide "an immediate infusion of at least $750 Billion" to respond to the crisis, including money for hospitals, expanded unemployment insurance, more funds for small businesses, help with child care, and food assistance for seniors.
The Australian government flagged a second round of injecting money in the market only a week after another injection of $17 Billion.
Strategies in Europe
Chancellor Rishi Sunak is due to announce the latest Treasury stimulus for the U.K. This new stimulus package will build on the £30 Billion spending package he published in the last Wednesday's Budget. This is meant for small businesses as they face a four-month shutdown.
Compared to the U.K.'s £30 Billion Coronavirus fight back package, France has announced a €300 Billion (£273Billion) "guarantee" that no French firm would go bust as a result of the country going into lockdown. “French measures to help companies and employees whether the Coronavirus storm will be worth some €45bn”, the country’s finance minister Bruno Le Maire said on Tuesday.
The Danish government will compensate as much as 75 percent of the wages of businesses. Companies claiming must be in danger of having to cut at least 30 percent of their workforce or more than 50 people.
The Italian government has greenlit a €25 Billion package, suspending all tax payments until the end of May, compensating up to 60 percent of commercial lease costs for businesses and guaranteeing loans of up to €5 Million for small and medium-sized companies.
The Spanish government has announced a €17 Billion package, which includes tax and social security credits and almost €4 Billion for its health services.
The Japanese approach
The Bank of Japan expanded its monetary stimulus, joining to support a global economy hit by the spreading Coronavirus. It will double its upper limit of annual purchases of ETFs to 12 Trillion Yen, and of real-estate investment trusts to 180 Billion Yen/year. Short –term interest rates are at minus 0.1% and long-term interest rates at around zero.
Sources: politico.com, dailymail.co.uk, smallbusiness.co.uk, theguardian.com, asia.nikkei.com
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