FT News Briefing EU rescue fund, coronavirus hits rents
Apr 2, 2020
France proposes a common EU fund to tackle the economic fallout from the coronavirus crisis, highlighting divisions among member states. Tensions rise as landlords face tenants unable to pay rent, leading to potential conflicts. Meanwhile, Amazon investigates alarming conditions at a call center in the Philippines, while SoftBank withdraws from a significant WeWork stock deal. The podcast dives deep into these pressing issues, painting a vivid picture of a continent grappling with unprecedented challenges.
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France's EU Coronavirus Fund Proposal
- France proposes a time-limited EU fund (5-10 years) for economic recovery post-coronavirus.
- This addresses German and Dutch concerns about common debt obligations by being recovery-focused and temporary.
EU Fund vs. Existing Mechanisms
- The proposed EU fund differs from existing mechanisms like the ESM by focusing on long-term economic recovery.
- While the ESM addresses immediate crisis response, the fund aims to support rebuilding Eurozone economies.
Commercial Tenants Struggle to Pay Rent
- Many commercial tenants, especially in retail and hospitality, cannot pay rent due to coronavirus closures.
- Companies like Cheesecake Factory and Mattress Firm have publicly stated their inability to meet rent obligations.