IAN Week in Review: First economic data points to global economic meltdown
On the economic front, unemployment data surged this week at a speed that few economists predicted. In the US, 10 million americans claimed for unemployment benefits in the second half of March. In Europe, the first numbers for March are equally dismal. Spain recorded a 300 thousand rise in registered unemployment but but job losses added up to over 800 thousand. In France, four million people were in temporarily laid off in the first two weeks of March but were being paid a part of their salary due to Government support schemes. In the UK, almost one million applied to a Government benefits scheme.
As the economic data starts to reflect the dire effects of social distancing across the globe, so increases the pressure for economic support measures, particularly in Europe. The European Commission announced it is working on a 100 bn euro job reinsurance scheme, i.e. a plan that would support national unemployment schemes.
On the political front, Hungary’s Orban took advantage of the global emergency to enact legislation that aloows him to govern by decree indefinitely, attracting the criticism of EPP president Donald Tusk. Several Spanish newspapers refused to participate in the Government’s press conferences on the coronavírus situation, claiming the Government was using those conferences for propaganda by refusing questions by more critical journalists. In the US, President Trump started to remove from office people who were involved in his impeachment trial. Finally, in the UK, labour elected its new President Keir Starmer, who will face the triple challenge of uniting the labour party after a very divisive Corbyn’s leaderhip, effectively oppose a very large et relatively United conservative majority in Parliament, under a critical emergency situation, as the UK is fast becoming one of the most affected countries in the world.
International Press Review
Economic policies for the covid 19 war, by Giovanni Dell’Ariccia, Paolo Mauro, Antonio Spilimbergo, and Jeromin Zettelmeyer: “The success of the pace of recovery will depend crucially on policies undertaken during the crisis.”
Can Liberal Democracy Survive COVID-19?, by Ana Palacio: “Even if Western leaders manage to limit the COVID-19 outbreak’s immediate fallout, it will mean little without forward-looking efforts to strengthen liberal-democratic systems from within. Such a failure would could well amount to handing China victory in the global contest of ideas that is now underway.”
Beware Viral Enabling Acts, by Jan Werner-Mueller: “It is crucial that opposition parties are broadly on board with measures taken to address what seems like a once-in-a-century public-health crisis. But the line between government and opposition must not be blurred in the name of “national unity,” and the mechanisms of political accountability must be strengthened, not weakened.”
The tragedy of two failing superpowers, by Martin Wolf:”Tto address the pandemic, China and the US must not only function. They must function together.”
Saudi-Russia oil war is a game theory masterstroke, by Antoine Halff: “The sell-off has hit high-cost producers while US shale can no longer be a free-rider”
How Hungary’s leader, Viktor Orban, gets away with it, by The Economist: “He takes near-dictatorial powers, while the EU does nothing.”
Il ne sera évidemment pas possible de remettre en marche d’un seul coup cette France en panne, by Jean Pisani Ferry
Estado de alarma… opaco, by Editorial El Español: “La estrategia de Moncloa está mucho más volcada en la autojustificación que en la rendición de cuentas. Y ha quedado muy claro que, aprovechando las circunstancias, el Poder legislativo ha quedado subordinado al Ejecutivo. Nunca más que hoy son necesarios luz y taquígrafos.”
