The euro weakened yesterday morning after the Bundesbank’s release of its monthly report, in which it said its real-time index suggests a decline of 1.9% in the economy in the week full lockdown came into place.
Nonetheless, the Bank is cautiously optimistic, saying that although ‘social and economic life in Germany is still very far from what was previously considered normal’, government stimulus and certain sectors such as construction.
Meanwhile, Angela Merkel and Emmanuel Macron have proposed a €500 billion rescue fund, whereby the EU would borrow money on the financial markets and then add the liability to the EU budget, rather than have singular countries pay fully. Nonetheless, Austria’s Sebastian Kurz signalled opposition from his government and the Prime Ministers of the Netherlands, Denmark and Sweden, so nothing is certain yet.
