The euro strengthened yesterday after the ECB’s monetary policy meeting and the EU summit. ECB officials added to its asset purchases by €500 billion, bringing the total stimulus program to €1.85 trillion. It also announced more subsidized loans for banks to stimulate lending.
At the EU summit, member states agreed its budget and recovery plan after Hungary and Poland lifted their veto threat.
News from both the ECB and the EU summit has improved the EU’s economic outlook for 2021. Despite this, the ECB said that “uncertainty remains high” due to the pandemic and the logistical challenge of vaccine distribution.
