MNI SOURCES: Eurozone Ministers Mull 1.5% GDP Virus Pledge

By David Thomas

     BRUSSELS(MNI) - Eurozone finance ministers are discussing whether to commit

to a specific amount of stimulus to combat the effects of coronavirus, perhaps

1.5% of gross domestic product, or to pledge to do what is necessary whatever

the cost, or to do both, a source close to today's Eurogroup discussions told

MNI.

     "They will try to present a reasonable package, but market expectations are

too high. How many bazookas do they want?" the official said. "I think crisis

reaction is much faster than in 2008 or 2011/12. And we still have to understand

the damage."

     Another source said that both a specific stimulus amount and a commitment

to do whatever it takes could be combined in a statement and would be regarded

as a good result.

     Another contact took the view that further concrete measures beyond those

already signalled by the Commission were unlikely today. It has proposed

redirecting EUR37 billion from the cohesion policy budget.

     In 2009, its coordinated response totalled EUR200 billion, with EUR170

billion coming from national budgets. The European Commission has already

indicated that member states will be able to exceed deficit and debt limits

stipulated by the Stability and Growth pact as they respond to a virus with

measures including lockdowns in Italy and Spain.

     The meeting in Brussels was set to begin by 1500 CET.

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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