ECB told ministers EZ financing needs to address coronavirus crisis could be up to EUR1.5 trillion – Reuters

Dhwani Mehta FXStreet

The European Central Bank (ECB) told ministers that Eurozone financing needs to address coronavirus crisis could be up to 1.5 trillion euros, adding that Germany supported measures worth 500 billion euros, Reuters reports, citing sources familiar with the matter.

Further, the sources said that the European commission warned Eurozone finance ministers that the euro area economy could shrink up to 10% this year.

Meanwhile, Germany’s Finance Minister Olaf Scholz tweeted: “In this difficult hour you have to Europa stand close together. Together with @BrunoLeMaire I, therefore, call on all euro countries not to refuse to solve these difficult financial questions and to enable a good compromise - for all citizens #Corona.”

The Spanish government spokeswoman said that the Europeans will lose trust in the EU if there is no unified response to the coronavirus crisis after Eurogroup fails to agree on joint debt issuance.

These are some of the responses coming after the Eurozone finance minister failed to reach a deal on a coordinated policy response to fight the coronavirus crisis.

EUR/USD pressured around 1.0850

EUR/USD remains in the red around mid-1.0800s, as markets react negatively to the Eurogroup news while a broadly firmer US dollar also adds to the downside.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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