Tag Archives: coronavirus pandemic

EU holds up Hungary’s recovery money in rule-of-law standoff

By Gabriela Baczynska

BRUSSELS (Reuters) -The European Union’s executive missed its own deadline to sign off on billions of euros in economic recovery aid to Hungary, delaying its decision in an attempt to win rule-of-law concessions from Budapest.

Hungary is set to receive 7.2 billion euros in EU stimulus funds meant to kickstart economic growth mauled by the coronavirus pandemic.

The funds will start flowing once the Brussels-based European Commission accepts national plans on how to spend them to ensure digital and green transitions, among others goals.

However, the Commission is using the money as leverage to push Hungary on its observance of the rule of law, an area where the increasingly authoritarian Prime Minister Viktor Orban has clashed with the EU.

A spokeswoman for the Commission said on Monday it was still analyzing the plan Budapest submitted and might propose a longer delay should it consider “months rather than days” were still needed to decide on it.

While the spokeswoman declined to give detail, the bloc’s Economics Commissioner Paolo Gentiloni said last week: “We are working on aspects to do with the respect for the rule of law.”

The Hungarian Prime Minister’s office said in a statement to state news agency MTI that talks with the Commission had been close to completion but that after Hungary’s law banning from schools materials seen as promoting homosexuality was passed, the European Commission came forward with what they said were “absurd demands”.

“The ideologically motivated political attacks obviously slow down the acceptance of the plan which was formulated earlier, in professional consultations,” the PM’s office said.

It added that talks were continuing with the Commission.

The Commission has long wanted Hungary to improve its public procurement process to combat “systemic irregularities” – or fraud.

Orban has also infuriated many of his EU peers in recent weeks with a new legislation that bans from schools materials seen as promoting homosexuality, the latest in a series of laws seen as discriminatory and restricting people’s rights.

Budapest has clashed with the EU on multiple occasions over Orban’s treatment of migrants and gay people, as well as the tightening of curbs around the freedom of media, academics and judges.

Orban portrays himself as a crusader for what he says are traditional Catholic values under pressure from the liberal West.

COVID-19 cases worsen in Latin America, no end in sight – health agency

By Anthony Boadle

BRASILIA (Reuters) -Cases of COVID-19 may be declining in North America but in most of Latin America and the Caribbean the end to the coronavirus pandemic “remains a distant future,” the Pan American Health Organization (PAHO) said on Wednesday.

While infections in the United States, Canada and Mexico are falling, in Latin America and the Caribbean cases are rising and vaccination is lagging badly. Only one in ten people have been fully vaccinated, which PAHO director Carissa Etienne called “an unacceptable situation.”

“While we are seeing some reprieve from the virus in countries in the Northern Hemisphere, for most countries in our region, the end remains a distant future,” she said.

Noting that the hurricane season in the Caribbean is arriving at a time when outbreaks are worsening, Etienne urged countries to outfit hospitals and expand shelters to reduce the potential for transmission. Social distancing and proper ventilation become difficult during storms, she said.

The highly transmissible Delta variant has already been detected in a dozen countries in the Americas, but so far community transmission has been limited, said PAHO viral disease advisor Jairo Mendez.

However, it has been found in Argentina, Brazil, Canada, Chile, Peru, the United States and Mexico, where it has spread in Mexico City, according to PAHO.

Given the presence of such variants, countries in the region should step up vigilance and consider the need to limit travel or even close borders, PAHO health emergencies director Ciro Ugarte said.

According to a Reuters tally, there have been at least 37,441,000 reported infections and 1,272,000 confirmed deaths caused by COVID-19 in Latin America and the Caribbean so far, one third more than in Asia and Africa combined.

(Reporting by Anthony BoadleEditing by Sonya Hepinstall)

Money is cheap, let’s spend it -White House $6 trillion budget message

By Andrea Shalal, Jarrett Renshaw and Jeff Mason

WASHINGTON (Reuters) -The White House on Friday unveiled a $6 trillion budget proposal that would ramp up spending on infrastructure, education and combating climate change, arguing it makes good fiscal sense to invest now, when the cost of borrowing is cheap, and reduce deficits later.

The first comprehensive budget offered by Democratic President Joe Biden faces strong opposition from Republican lawmakers, who want to tamp down U.S. government spending and reject his plans to hike taxes on the rich and big corporations.

Biden’s plan for fiscal year 2022 calls for $6.01 trillion in spending and $4.17 trillion in revenues, a 36.6% increase from 2019 outlays, before the coronavirus pandemic bumped up spending. It projects a $1.84 trillion deficit, a sharp decrease from the past two years because of the COVID-19 pandemic, but up from 2019’s $984 billion.

White House officials said the Biden’s $4 trillion plans to address historic U.S. inequality, climate chance and provide four more years of free public education would be completely paid for in 15 years, with tax increases starting to chip away at deficits after 2030.

Cecilia Rouse, the chair of Biden’s Council of Economic Advisers, says Biden’s plan is front loaded and that the administration was willing to live with budget deficits amid low-interest rates to make significant investments in the nation’s economy. She projected a drop in deficits by over $2 trillion in the following years.

“That is a sharp departure from unpaid tax cuts under the prior administration that seriously worsened our long-term fiscal problem,” she said. “The most important test of our fiscal health is real interest payments on the debt. That’s what tells us whether debt is burdening our economy and crowding out other investments.”

Rouse said the economy could see short-term inflation spikes, fueled by the sharp growth in the economy, but added she expected it to settle down to an annual rate of around 2% over time.

Increased investment would boost U.S. economic growth, with the current conservative White House forecast calling for 2% gross domestic product growth in 2031, compared with the Federal Reserve’s estimate of 1.8%.

Biden’s first full spending outline since taking office in January serves as the fiscal blueprint for his political priorities, and is likely to kick off months of difficult negotiations with Congress, which needs to approve most of the spending.

Republicans’ opposition is growing to much of Biden’s push to spend more to revamp the U.S. economy, as they argue it could fuel inflation and tamp down corporate competitiveness.

Biden has tussled with Republicans over the price of his initiatives, recovery from the pandemic and improvement of roads and bridges. No Republicans voted for his $1.9 trillion stimulus bill, but some touted its benefits later, drawing some chiding from the president.

U.S. Treasury Secretary Janet Yellen said on Thursday that the budget would push U.S. debt above the size of the U.S. economy but would not contribute to inflationary pressures.

(Reporting by Jeff Mason and Andrea Shalal; Editing by Peter Cooney, Heather Timmons and Steve Orlofsky)

U.S. Attorney General Garland expands resources to combat hate crimes

By Sarah N. Lynch

WASHINGTON (Reuters) – U.S. Attorney General Merrick Garland on Thursday directed the Justice Department to expand funding and other resources to states and municipalities to help track and investigate hate crimes, and ordered prosecutors to step up both criminal and civil investigations into hate incidents.

In a memo to Justice Department employees, Garland said that Associate Attorney General Vanita Gupta will assign someone to coordinate and serve as a central “hub” on hate crimes by working with prosecutors, law enforcement and community groups to ensure there are adequate resources to investigate and track hate crimes.

“Hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands,” Garland said in his memo.

“All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love, or how they worship.”

Garland’s memo comes at a time when Asian Americans have faced an increase in attacks and racist encounters since the start of the coronavirus pandemic, when then-President Donald Trump first started blaming the virus on China.

Earlier this month, President Joe Biden signed into law the COVID-19 Hate Crimes Act, which designates a Justice Department employee to expedite a review of hate crimes reported to police during the pandemic.

In March, Garland announced he was launching a 30-day expedited review to explore ways the department could improve efforts to prosecute hate crimes and collect better data.

Thursday’s memo implements some requirements in the law, as well as some recommendations from the prior review.

Garland’s memo on Thursday also designates an official who will be tasked with expediting the review of hate crimes and calls on U.S. Attorneys offices to assign local criminal and civil prosecutors to serve as civil rights coordinators.

“Acts of hate do not always rise to the level of federal hate crimes, but such hate incidents still have a destructive effect on our communities. Federal civil statutes sometimes provide remedies when federal hate crime statutes do not,” Garland wrote.

(Reporting by Sarah N. Lynch; Editing by Marguerita Choy)

Biden plans action to thwart construction supply issues

By Andrea Shalal and Trevor Hunnicutt

CLEVELAND (Reuters) -President Joe Biden said on Thursday he will soon take action to ease U.S. supply pressures in construction materials, eliminate transportation bottlenecks and stop anti-competitive practices in the economy.

“In the coming weeks, my administration will take steps to combat these supply pressures, starting with the construction materials and transportation bottlenecks, and building off the work we’re doing on computer chips,” Biden said in a speech at Cuyahoga Community College in Ohio.

“We’re also announcing new initiatives to combat anticompetitive practices that hurt small businesses and families.”

Biden, a Democrat eager to build on the U.S. economic recovery from the coronavirus pandemic, delivered the speech as he works to sell trillions in new spending on infrastructure, manufacturing subsidies, childcare and other investments.

The president will release a budget plan on Friday for fiscal-year 2022 that Treasury Secretary Janet Yellen said will push U.S. debt above the size of the national economy but not contribute to inflationary pressures.

Republicans object to Biden’s main plans to help pay for the extra spending: tax hikes on high-income earners and the biggest corporations.

The spending could help push down lingering unemployment following a pandemic that killed hundreds of thousands of Americans and put millions more out of work.

But signs of higher inflation from gasoline to lumber, and lingering shortages of supplies like computer chips, have threatened to derail that recovery by making critical goods and labor more expensive or hard to come by.

The Biden administration has been eager to head off suggestions that its spending polices could exacerbate rising prices and spark inflation that could worsen economic inequality.

“Now, as our economy recovers, there’s gonna be some bumps in the road,” Biden said. “You can’t reboot a global economy like flipping on a light switch. There’s gonna be ups and downs in jobs and economic reports. There’s going to be supply-chain issues – price distortions on the way back to a stable and steady growth.”

(Reporting by Andrea Shalal and Trevor Hunnicutt; Editing by Peter Cooney)

New York lifts mask requirements for the vaccinated, California waits

By Jonathan Allen and Barbara Goldberg

NEW YORK (Reuters) -New York state this week will drop face mask requirements in most public spaces for people vaccinated against COVID-19, conforming with the latest U.S. Centers for Disease Control and Prevention guidance, Governor Andrew Cuomo said on Monday.

In California, Governor Gavin Newsom said his state would keep its mask order in place for another month, despite the CDC’s new recommendations.

Cuomo and Newsom, both Democrats, have drawn criticism for their handling of the coronavirus pandemic. Newsom faces a Republican-led recall election.

New Jersey Governor Phil Murphy, also a Democrat, said he would lift mask restrictions outdoors but keep in place a mandate to wear them indoors. Murphy said schools would be required to provide full-time, in-person classroom instruction again in the fall.

On Saturday, the CDC said students in schools across the United States wear masks for the 2020-2021 academic year because not all will be inoculated.

New York will still order public transportation riders to wear face coverings and mandate them in schools and some other communal settings, Cuomo said, adding: “Unvaccinated people should continue to wear a mask.”

Cuomo said New York health officials decided to lift the mask order after reviewing the CDC’s new guidance. Some 52 percent of New York adults have been fully inoculated and 61.8 percent had received at least one shot as of Monday.

Cuomo, speaking to reporters at Radio City Music Hall, said it would be up to each business or venue how they should determine vaccination status

“I’m sure when people are coming into Radio City Music Hall, they are going to ask, ‘I’m sitting next to someone. I don’t know who they are. Are you sure they were vaccinated?'” he said. “That’s why it’s on the operator’s best interest to say ‘Yes! They had a card and they were checked when they walked in the door.'”

The three-term governor said he expected that some New Yorkers might keep wearing masks as a precaution after this week’s rule change.

Cuomo, 63, has resisted calls to resign in the face of probes by the state attorney general and legislature over accusations of sexual harassment, his office’s reporting of nursing home deaths and his use of staff members and resources in the writing of a book on his handling of the pandemic.

(Reporting by Jonathan Allen and Barbara Goldberg in New York and Dan Whitcomb in Los Angeles; editing by Jonathan Oatis and David Gregorio)

Fed officials sift through tea leaves of weak U.S. jobs report

By Howard Schneider and Ann Saphir

WASHINGTON (Reuters) – Federal Reserve officials grappled on Tuesday with April’s surprisingly weak employment growth, maintaining faith in the U.S. economic rebound but acknowledging the pace of the jobs recovery may prove choppier than anticipated.

The United States added 266,000 jobs last month, about a quarter of the gain penciled in by economists, including Fed officials themselves, in what had been anticipated to be the start of a steady run of strong job growth.

The April report instead raised a broad set of questions about the complicated interplay among peoples’ decisions about whether to work during the ongoing coronavirus pandemic, constraints stemming from the lack of child care and closed schools, the slowing pace of COVID-19 vaccinations, global supply bottlenecks for critical goods like semiconductors, and the enhanced federal unemployment benefits that may be encouraging some potential workers to stay home.

In contrast to the low number of jobs created in April, job openings as of the end of March hit a record 8.1 million, narrowing the wedge with the roughly 9.8 million people still unemployed.

“What the data suggests, and what I hear anecdotally, is that labor demand and labor supply are both on the path to recovery but they are recovering at different paces and there may be friction,” Fed Governor Lael Brainard told the Society for Advancing Business Writing and Editing (SABEW).

“There are still concerns over contracting the virus, the need to take public transportation,” she said, while many parents are waiting for schools to reopen.

“I do expect to see good improvement on people wanting to go to work and able to work,” Brainard added. “We are just seeing it in fits and starts,” a fact she said validated the U.S. central bank’s “patient” promise to leave crisis-level interest rates and bond-buying in place until the recovery is more complete.

In separate appearances, Cleveland Fed President Loretta Mester, Philadelphia Fed President Patrick Harker, and San Francisco Fed President Mary Daly laid out similar arguments, and noted that much may hinge on whether larger numbers of Americans get vaccinated so that people overall become more comfortable in close-contact jobs and activities.

‘HARD CHOICES’

The April jobs report has kindled intense debate in Washington about where the recovery stands and whether current federal policy is stifling aspects of it.

The economy is poised for its strongest growth since the early 1980s, jobs boards are bulging with open positions, and the number of new daily coronavirus infections has recently ebbed to levels not seen since the start of the pandemic.

Businesses, even the smaller enterprises that had to be nursed through the pandemic with federal help, now complain those same benefits are allowing workers to stay home.

Brainard, however, noted that about two-thirds of school-age kids were still not back in classrooms on a full-time basis, while only about a quarter of those aged 18 to 64 – the core of the U.S. work force – are fully vaccinated.

The decision by the Biden administration and Congress earlier this year to extend a weekly $300 federal unemployment benefit until September has become a particular point of contention, with Republican governors in several states moving to halt the payments.

Fed officials, however, have largely discounted the impact of the extra payments on workers’ willingness to seek jobs, arguing that it isn’t the benefit as much as health risks and other problems that are at play. At the start of the pandemic, federal benefits were put in place largely so people would not have to venture out to jobs that might expose them to illness and allow them to spread it further.

“It is true that with the extension of the unemployment benefits people are in a financial position so that they can make those hard choices, about whether they feel comfortable reentering or not,” Mester said on Yahoo Finance.

The pace of the labor market rebound has a direct bearing on how the Fed intends to set monetary policy.

In particular, the Fed has said it would not change its current $120 billion in monthly purchases of government securities until there was “substantial further progress” in reaching maximum employment.

Slower job growth pushes that moment further into the future even as concerns increase that the continuing loose monetary policy may fuel inflation, or drive up asset prices that will eventually return to earth.

New consumer price data this week is expected to stoke that debate as prices for staple goods and commodities like lumber for home projects move higher.

Fed officials, however, say they expect the pressure on prices to also ease over time, just as the difficulties in the labor market will be resolved.

“To the extent that supply chain congestion and other reopening frictions are transitory, they are unlikely to generate persistently higher inflation on their own,” Brainard said, noting that some of the very forces that might generate higher prices now – a surge in demand as people get back to normal activity, for example – won’t be repeated.

Government fiscal spending is also expected to fade next year.

“Remaining patient through the transitory surge associated with reopening will help ensure that the underlying economic momentum that will be needed to reach our goals as some current tailwinds shift to headwinds is not curtailed by a premature tightening of financial conditions,” she said.

(Reporting by Howard Schneider and Ann Saphir; Editing by Paul Simao)

G7 scolds China and Russia over threats, bullying, rights abuses

By William James, Guy Faulconbridge and Elizabeth Piper

LONDON (Reuters) – The Group of Seven scolded both China and Russia on Wednesday, casting the Kremlin as malicious and Beijing as a bully, but beyond words there were few concrete steps aside from expressing support for Taiwan and Ukraine.

Founded in 1975 as a forum for the West’s richest nations to discuss crises such as the OPEC oil embargo, the G7 this week addressed what it perceives as the biggest current threats: China, Russia and the coronavirus pandemic.

G7 foreign ministers, in a 12,400-word communique, said Russia was trying to undermine democracies and threatening Ukraine while China was guilty of human rights abuses and of using its economic clout to bully others.

There was, however, little concrete action mentioned in the communique that would unduly worry either Chinese President Xi Jinping or Russian President Vladimir Putin.

The G7 said it would bolster collective efforts to stop China’s “coercive economic policies” and to counter Russian disinformation – part of a move to present the West as a much broader alliance than just the core G7 countries.

“I think (China is) more likely to need to, rather than react in anger, it is more likely going to need to take a look in the mirror and understand that it needs to take into account this growing body of opinion, that thinks these basic international rules have got to be adhered to,” British Foreign Secretary Dominic Raab said.

Russia denies it is meddling beyond its borders and says the West is gripped by anti-Russian hysteria. China says the West is a bully and that its leaders have a post-imperial mindset that makes them feel they can act like global policemen.

China’s spectacular economic and military rise over the past 40 years is among the most significant geopolitical events of recent history, alongside the 1991 fall of the Soviet Union that ended the Cold War.

XI AND PUTIN

The West, which combined is much bigger than China and Russia economically and militarily, has struggled to come up with an effective response to either China or Russia.

“We will work collectively to foster global economic resilience in the face of arbitrary, coercive economic policies and practices,” the G7 ministers said on China.

They said they supported Taiwan’s participation in World Health Organization forums and the World Health Assembly – and expressed concerns about “any unilateral actions that could escalate tensions” in the Taiwan Strait.

China regards Taiwan as its own territory and opposes any official Taiwanese representation on an international level.

On Russia, the G7 was similarly supportive of Ukraine but offered little beyond words.

“We are deeply concerned that the negative pattern of Russia’s irresponsible and destabilizing behavior continues,” G7 ministers said.

“This includes the large build-up of Russian military forces on Ukraine’s borders and in illegally-annexed Crimea, its malign activities aimed at undermining other countries’ democratic systems, its malicious cyber activity, and (its) use of disinformation.”

VACCINES

On the coronavirus pandemic, the G7 pledged to work with industry to expand the production of affordable COVID-19 vaccines, but stopped short of calling for a waiver of intellectual property rights of major pharma firms.

“We commit to working with  industry  to facilitate expanded manufacturing at scale of affordable COVID-19  vaccines, therapeutics and diagnostics and their component parts,” the G7 foreign ministers said in a joint statement.

They said the work would include “promoting partnerships between companies, and  encouraging voluntary licensing and tech transfer agreements on mutually agreed terms”.

(Additional reporting by Alistair Smout; Writing by Guy Faulconbridge; Editing by Mark Heinrich)

Come visit Italy, Draghi says after G20 tourism meeting

By Crispian Balmer

ROME (Reuters) – Prime Minister Mario Draghi urged foreigners on Tuesday to book their summer holidays in Italy, saying it was set to introduce travel passes from the middle of May, sooner than much of the rest of Europe.

Speaking after a meeting of tourism ministers from the Group of 20 wealthy nations, Draghi said it was important to provide clear, simple rules to ensure that tourists can once again travel freely in the wake of the coronavirus pandemic.

He said the European Union would introduce a health pass by the middle of June, allowing easy travel across the continent for those who had been vaccinated, had just tested negative or could prove they had recently recovered from COVID-19.

But he said Italy, which generates some 13% of its economic output from tourism, would have its own green pass ready by the middle of this month.

“Let us not wait until mid-June for the EU pass,” Draghi said. “In mid-May tourists can have the Italian pass … so the time has come to book your holidays in Italy,” he added.

Travel between Italian regions has been strictly restricted for much of the year to fight the virus. But with case numbers falling, the government hopes to attract visitors over the summer with so-called vaccine passports.

Italy is the president of the G20 this year and chaired Tuesday’s meeting of tourism ministers, who looked at ways of recovering from the damage wrought by the coronavirus.

International tourist arrivals dropped 73% globally in 2020 and nearly 62 million travel and tourism jobs have been lost globally as a result of the pandemic, according to the World Travel and Tourism Council.

The G20 ministers said in a communique that “the resumption of travel and tourism was crucial for global economic recovery.” They said the health crisis had presented an “opportunity to rethink tourism” and put it on a sustainable footing.

Their statement did not refer specifically to vaccine passports, but said ministers wanted to support and coordinate “safe international mobility initiatives.”

Countries around the world are looking at ways for people to show they have had vaccinations to allow them to travel freely. However, airports, border agencies and airlines fear there will be no clear global standard.

(Reporting by Crispian Balmer, editing by Gavin Jones and Giles Elgood)

U.S. pledges sustained help for India in tackling COVID crisis

By Humeyra Pamuk and David Brunnstrom

WASHINGTON (Reuters) -Senior U.S. officials on Tuesday pledged sustained support for India in helping it deal with the world’s worst current surge of COVID-19 infections, warning the country is still at the “front end” of the crisis and overcoming it will take some time.

The White House’s National Security Council coordinator for the Indo-Pacific, Kurt Campbell, told a virtual event on the U.S. assistance that President Joe Biden had told Indian Prime Minister Narendra Modi on a phone call on Monday: “You let me know what you need and we will do it.”

Campbell said at the event, organized by the U.S.-India Business Council and U.S. Chamber of Commerce Foundation, that Washington was committed to helping the world’s second most populous country get to grips with the crisis.

“We all have to realize that this is not a challenge that is going to resolve (in) the next several days,” he said.

Tackling the crisis, he said, was important not just for the people of India but for the United States, given India’s essential role as global provider of vaccines.

India is now the epicenter of the global coronavirus pandemic as a second wave of infections has driven the death toll up to almost 200,000.

On Tuesday, vital medical supplies began to reach the country of 1.35 billion people but hospitals starved of life-saving oxygen and beds still were turning away coronavirus patients.

The United States and other countries pledged urgent medical aid to try to contain the emergency in India.

The U.S. State Department’s coordinator for global COVID-19 response, Gayle Smith, added: “We all need to understand that we are still at the front end of this. This hasn’t peaked yet.

“So this is going to require determination…We’re going to work really hard for some time, but we’re confident we can do it,” she said. “We anticipate that at the height of this kind of complex emergency, it’s going to be very fluid for a while as things fall into place. We are collectively going to have to be very agile and very nimble.”

Jeremy Konyndyk, global COVID-19 adviser for USAID, said the agency was concerned about the situation in countries in the same region as India and wanted to support both India’s capacity to get the situation under control and the wider region.

He said the United States was providing some badly needed raw materials to the Serum Institute of India to allow it to scale up the production of the AstraZeneca vaccine there.

Aside from the United States, countries including Britain and Germany have pledged support, while the World Health Organization said it was working to deliver 4,000 oxygen concentrators, calling India’s plight “beyond heartbreaking”.

Two Indian government sources told Reuters earlier on Tuesday that New Delhi expects to secure the biggest chunk of the 60 million AstraZeneca COVID-19 vaccine doses the United States will share globally.

On Monday, senior U.S. officials said an agreement between the United States and three of its closest Indo-Pacific partners to produce up to a billion coronavirus vaccine doses in India by the end of 2022 to supply other Asian countries were “still on track,” despite the current crisis in the country.

(Reporting by David Brunnstrom and Humeyra Pamuk; Editing by Mark Heinrich)