EU Recovery Plan Underway
European stock markets appear torn, as investors are caught amid their hopes for a quick recovery, and a new spike in coronavirus infections.
Optimism has noticeably given way to worries about a second COVID-19 wave, as the US states of Texas, California and Florida have recorded their highest daily infection increases, and 400 slaughterhouse workers in Germany have tested positive for the virus.
Investors now await EU leaders’ videoconference meeting to discuss the European Commission's plan to borrow 750 billion euros against the EU budget. The size of the recovery fund is already up for debate, as is the Commission’s proposal to pay 2/3 of the package to member states in grants.
Regardless, decisions need to be made in a timely manner, as the pandemic threatens to burry EU in the worst recession in its history. Angela Merkel strongly urges fellow EU member states to settle the bloc’s future budget and the post-coronavirus recovery fund before the summer break.
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