AVOIDING A FINANCIAL, ECONOMIC AND SOCIAL DISASTER

The European Union's finance ministers have reached a deal on a 540 billion-euro rescue plan to support the continent's coronavirus-stricken economies.

The key feature of the rescue package involves the European Stability Mechanism, a bailout fund that was created during the EU's eurozone debt crisis. The ESM would make 240 billion euros available for indebted countries. The only requirement to access this line of credit is a commitment to use the funds for the financing of direct or indirect health care, cure and prevention-related costs associated with COVID-19. It will also be available for economic support, but with conditions.

In addition to the ESM credit, the EU ministers approved 200 billion euros in loans from the European Investment Bank (EIB) for EU businesses and a 100 billion euros jobs support program that was proposed last week by the European Commission.