Gulf nations have been quick to prevent economic downturn and Europe must do the same

From the outset of the novel coronavirus outbreak, it became clear that its repercussions would go far beyond public health. As countries have scrambled to hinder the spread of COVID-19, the restrictions implemented have had a devastating effect on global markets.
 The economic impact can be observed at all levels from individual retailers that have taken the unprecedented move of indefinitely shutting their doors, to stock market and oil price plunges. 
 Yet with all of these drastic consequences, many governments are still hesitant to orchestrate an economic response. 
Europe, in particular, has been slow to implement any economic stimulus packages. Many of Europe’s leaders made it clear from the outset that this was not a priority, resulting in a deadlock of sorts on how to react to the economic crisis. Many policymakers have, in fact, demanded swift action. Pascal Canfin for instance, a French MEP and ally of President Emmanuel Macron, called for a “European stimulus package”, a continent-wide recovery fund that would be used to sustain corporations and smaller businesses. Canfin urged his colleagues to make this a priority at the EU leaders’ summit at the end of March.
Similarly, Christine Lagarde, president of the European Central Bank, called for an emergency fund of €27 billion to deal with the economic fallout. Mario Centeno, the head a group known as the ‘Eurogroup’ said that his members would come up with “a very large policy response” to address the pandemic and that it would likely require more than the funds already pledged by Central Bank president, Lagarde. But more senior EU officials think it’s premature to discuss this kind of stimulus at all. The European commission’s vice-president in charge of the economy, Valdis Dombrovskis for instance, responded recently to reporters with the following: “In current circumstances, I wouldn’t be talking so much about fiscal stimulus, rather about crisis response.”
 What has resulted from this lack of decisiveness is a series of lacklustre remedies. Instead of direct assistance, governments have focused on a mixture of tax moratoriums, payment extensions on social charges, loan guarantees and wage subsidies for workers who cannot work or move to part-time roles. By far the most daring moe from a European nation to date came from Sweden when policymakers in Stockholm allowed businesses to defer tax payments for up to a year at a cost of more than €27.5 billion to the nation’s treasury, or 6% of gross domestic product. All of these steps have so far failed to make a substantial difference or bring confidence back to markets. As one London based analyst interviewed by the New York Times put it, European dysfunction in responding to the crisis is “a major source of concern, it’s almost bordering on policy negligence.” 
At this stage in the game, the time for deliberation has passed.
The countries in Europe hit the hardest by the coronavirus, such as France and Italy are already teetering economically. Even Germany with its robust economy and a relatively low rate of COVID-19 spread has suffered due to a crash in demand for its exports. 
In order to have any hope of mitigating the economic lapse, European nations must orchestrate a continental effort to keep businesses afloat. Here, the eurozone can look to other governments that have already taken strong measures to maintain their economies’ viability.
The UAE, for instance, recently unveiled a $27 billion stimulus package that will go mostly toward supporting the Emirates’ vital industries such as banking and tourism. Authorities have also taken major steps to ease the burden on owners of small to medium enterprises (SMEs) such as cancelling customs and other licensing fees. Direct support to the small business sector will come from a $1.3 billion fund and an additional $800 million sum to provide credit guarantees to support SME operations. Both of these packages have been approved by the Abu Dhabi Executive Council.
Another instance of a comprehensive support plan was seen in Australia where the Treasury in coordination with the Prime Minister’s office, has begun a $17.6 billion economic stimulus package program. According to official reports, as many as 6.5 million workers and 3.5 million businesses would be supported by the effort. First to be activated will be a direct $750 payment (tax-free) to low-income earners as well as pensioners, veterans, and others. Additionally, a “Boost Cash Flow” fund of $6.7 billion has been set up to deliver payments of up to $25,000 to SME’s, with another $1.3 billion set aside for business owners to continue paying their employees.
Other stimulus plans have been activated throughout the Middle East and Asia, with Saudi Arabia’s central bank beginning to disperse $13.3 billion to support private businesses, and Japan announced a $4 billion aid program. The largest government-funded plan has come from Washington, where the federal authorities are on the cusp of approving a $1 trillion bill to help American workers and businesses get through the economic impact of the coronavirus.
Can European leaders transcend their longstanding bickering and form a plan for the good of their constituents? There is room for optimism.
As the crisis began to loom near, many European capitals pledged billions of euros for a recovery effort in what was a rare sign of unity. Since then, however, no unified plan has come about. Europe’s heads of state can effectively combat the economic effects of COVID-19 if only swift action is taken.