More must be done to tackle coronavirus crisis, says Eurogroup's Centeno

[LISBON] Eurogroup chief Mario Centeno said on Monday the half-a-trillion euros of support for coronavirus-battered economies approved last week by the bloc's finance ministers was only the beginning and more must be done to tackle the impact of the outbreak.

"This (rescue package) is not the end of the line. We have to do more for Europe and we will do more for Europe," Mr Centeno said in an interview with TVI television.

The agreement was reached on Thursday after Germany and France helped end opposition from the Netherlands regarding the issue of attaching economic conditions to emergency credit for governments weathering the impacts of the pandemic.

Thursday's deal does not mention using joint "eurobond" debt to help finance a recovery.

Mr Centeno said finance ministers will meet soon after the European Council's special meeting on April 23 and the "debt issue" will be on the table as the recovery of indebted countries is "much more complex."

Though there were some bumps along the way, Mr Centeno said the agreement was a "victory" for Europe.

"In 2008 it took us a long time to react ... but this time, in just 10 days, we achieved a financial framework to provide liquidity," he said, adding that the rescue plan created a "safety net" for countries to respond to the crisis.

Mr Centeno, who is also Portugal's finance minister, said the coronavirus crisis presented unprecedented challenges for his country as the "economy is nearly stalled."

"We are acting in the face of this crisis as if we were playing a new game without having read the rules," he said.

With 16,934 coronavirus cases and 535 deaths, far below hard-hit Spain, Portugal's export-oriented, tourism-dependent economy is already feeling the an impact of the coronavirus.

Last month the Bank of Portugal said the country's gross domestic product (GDP) would drop between 3.7 per cent and 5.7 per cent in 2020. Last year it grew 2.2 per cent.

During the interview with TVI, Mr Centeno estimated that Portugal's annual GDP could fall 6.5 per cent for every month and a half the economy is on hold.

"We cannot resume our economy without a global decision," Mr Centeno said. "That's what Europe is focused on."

REUTERS