ECB's Schnabel: Blocking the EU's recovery fund would be an economic disaster
|The European Central Bank (ECB) executive board member Isabel Schnabel said Friday, attempts to block the European Union’s (EU) recovery fund would be an “economic disaster for Europe”.
Key quotes
“The increase in public debt is inevitable and sensible in the face of this crisis of the century, as long as the expenditures sustainably boost growth.”
“The fact that the collapse of US hedge fund Archegos Capital Management led to billions of losses at major lenders such as Credit Suisse was “a warning signal that there are significant systemic risks.”
“The case showed that there were also “significant regulatory gaps.”
Market reaction
The euro paid little heed to the above comments, as EUR/USD remains at the mercy of the US dollar dynamics and broader market sentiment.
The spot was last seen trading at 1.1894, losing 0.15% on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.