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IMF Warns Europe’s Firms Need Equity to Save 15 Million Jobs

European governments must help businesses boost their equity or face a wave of bankruptcies and unemployment that could cost 15 million jobs, according to analysis by the International Monetary Fund.

The Fund estimates massive public cash handouts during the pandemic helped save 30 million jobs, but the share of insolvent companies still increased, with small firms particularly affected. To lift European business out of danger, it said a combination of public and private support totaling 2% to 3% of economic output is needed.