Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


Coronavirus Pandemic Risks Widening EU Splits

Jamie Dettmer

   At the start of their coronavirus lockdowns,European governments
   scrambled to shore up businesses and the public sector with subsidies
   -- a bid to ensure that a post-virus recessionis notprolonged because
   of cascading layoffs and bankruptcies.

   But the economic prospects look dim for Europe with the impact of the
   lockdowns, now being slowly relaxed, lasting years, analystssay.
   Governments, saddled with annual deficits atwartimelevels,face dismal
   choices between cutting public spending orincreasingtaxes--either of
   which wouldslow downrecovery.

   This week,European countries further eased coronavirus
   restrictionsandopenedmore businesses,including bars and hairsalons,
   after two months of economically crippling shutdowns.

   At the tomb and basilica of St.Francis in Assisi,Italy,Father Enzo
   Fortunato said,"Having the churches open again in this period is a sign
   of hope."

   He spoke as mask-wearing worshippers observed strict socialdistancing
   rulesand had their temperatures taken at the entrance. But relief at
   the easing was mixed with sorrow for the dead and anxiety about the
   economic consequences on a country that has never fully recovered from
   the 2008 financial crash.

   While Italians relished some freedom from onerous lockdown rules,
   officials in Rome--much like their counterparts in other European
   capitals--weremonitoringthe economy, which they expect to shrink by
   10%.

   Confcommercio,Italy's retailassociation,reported Monday that consumer
   spending collapsed by 47%in April and that the risk of permanent damage
   to the economy is great.Carlo Sangalli, the association's
   president,called for "an overall plan for the reconstruction of the
   country, a plan that still does not exist."

.