ECB's de Cos: EU recovery fund needs to be approved as soon as possible

Dhwani Mehta FXStreet

In a webinar hosted by Spanish business school ESADE on Wednesday, the European Central Bank (ECB) Governing Council Member Pablo Hernandez de Cos emphasized on the need to approve a European recovery fund as soon as possible to enable faster economic recovery from the coronavirus impact.

De Cos noted: “What is important is to get this plan approved as soon as possible and that its size is appropriate for the task that lies ahead.”

On Tuesday, a spokesperson for the European Union's (EU) Brussel's headquarters, Barend Leyts, announced that EU leaders will hold the next meeting on the EU recovery plan and long-term budget on July 17th and 18th.

Meanwhile, an Elysee official confirmed on Wednesday, French President Emanuel Macron and German Chancellor Angela Merkel are scheduled to meet on June 29 to discuss the EU recovery fund proposal.

Market reaction

The pick-up in pace of the EU fund approval could render EUR-positive. But for now, the shared currency remains vulnerable amid the US-EU trade war and broad risk-aversion.

The spot trades flat at 1.1250, at the press time.

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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