OREANDA-NEWS. The Economic and Financial Affairs Council of the European Union approved the European Commission’s proposal to suspend for the first time in history the key document of the Eurozone, the Stability and Growth Pact, to support the economy amid the coronavirus pandemic.

This was announced in a statement by the Council of the EU, published after a video conference of ministers of economy and finance. The ministers agreed that there is a severe economic downturn in the Eurozone and the European Union as a whole, the statement says.

The Stability and Growth Pact limits the state budget deficit of the Eurozone countries to 3 % of GDP, and the national debt to 60 % of GDP. The suspension of the document will allow governments to raise loans without restrictions, increasing the budget deficit to provide assistance to business.