The euro is stronger against the pound and weaker against the dollar this morning. The EU summit will start today over a virtual video call. Amongst other issues, such as Brexit, EU leaders will discuss the EU budget, after Hungary and Poland blocked its approval over a clause that ties funding with adherence to the rule of law.
The Hungarian Prime Minister claimed that the rule of law clause “jeopardises trust” between member states. The Polish justice minister said, “It is really an institutional, political enslavement, a radical limitation of sovereignty.”
If opposition continues from these member states, then there could be issues with accessing the €750 billion coronavirus recovery fund and this could have an impact on the euro.
