It was a choppy day for the euro against the pound yesterday, after almost hitting a month low earlier in the week. German inflation this morning has shown a small drop and the markets are expecting European industrial production to decline further.
Ursula von der Leyen has called for long-term solutions to the financial challenges of coronavirus. She said yesterday that the structure of the next budget must be different, stretching to a period of seven years, with under discussion ‘not a billion, but a trillion…[of] investment initiative that has to be done.’ The EC President also hinted that this would be the best solution at a time when the wealthier northern member states have found themselves opposed to their southern neighbours, as it could remove the need for joint debt instruments.
The European Commission has also unveiled its broad strategy for ending lockdowns in the EU, with an expectation that measures will last for some time. Ursula von der Leyen said that once there had been a ‘significant decrease’ in the virus’ spread and sufficient healthcare and monitoring capacity, countries could consider lifting their lockdown in a phased approach, being sure to notify neighbouring countries to avoid ‘unwanted effects’.
Tomorrow, we will see Eurozone construction figures, expected to drop by 5 points, as well as inflation figures.
