German Chancellor Angela Merkel and Spanish Prime Minister Pedro Sánchez have opened a path to agreeing on a European coronavirus crisis fund, according to El Pais. The Madrid-based publication says that both leaders are close to agreeing on a compromise that does not include coronabonds but would enlarge the bloc’s fiscal response ahead of the EU Summit due on Thursday.
Earlier this week, Spain proposed a €1.5 trillion fund based on perpetual debt as a way forward. The sum of the compromise package is unclear.
While details are vague, any deal between these countries would have to receive the blessing of Italy – the hardest-hit country in the eurozone and the most vocal in calling for solidarity. It would also need the approval of the Netherlands, which has been opposed to any sharing of debt or unconditional help.
EUR/USD is trading around 1.0850, stable within its range. COVID-19 statistics and the jitters in oil markets are also eyed by investors.
Share
