The Coronavirus (COVID-19) pandemic has led to unprecedented disruptions to the growth of global industries and the supply chain. European countries, especially Spain, have been heavily affected by this outbreak. The Spanish Government has taken several measures to mitigate the impact of COVID-19.
To combat the spread of COVID-19, the authority has put a restriction on movements and public gatherings. The Government also suspended all commercial, cultural, recreational, hotel, and restaurant activities except essential services. Amid the coronavirus pandemic Spain has decided to undertake an urgent modification of its current foreign investment screening mechanism. The new investment regime is governed by the provisions of Royal DecreeLaw 8/2020 of 17 March on urgent and extraordinary measures in response to the economic and social impact of COVID-19. The Government may suspend the liberalized regime for foreign direct investment in sectors when they affect public security, public order and public health.
The Spanish Government has announced welfare packages for citizens and business affected by COVID -19. The Government has adopted a programme of exceptional economic measures to mitigate the impact of COVID-19. ICO (Official Credit Institute) credit line guarantees, the State will grant guarantees worth $107 billion to facilitate the provision of loans for companies and self-employed workers. The fund will help to continue its operations and protecting economic activity and employment in the country.
The European Central Bank (ECB), is a central bank of the 19 European Union countries, has decided to provide monetary policy support through additional asset purchases of approximately $129 billion until end-2020 under the existing program (APP). The legislation includes measures that address health and the economy at large, with a particular emphasis on the tourism industry, small and medium size enterprises (SMEs).