EU Commission: European recovery plan and next long-term budget to use €1.85 trillion

Eren Sengezer FXStreet

The European recovery plan and the next long-term budget will use €1.85 trillion to kick-start the EU economy, Reuters reported on Wednesday, citing the official European Commission document.

Key takeaways

"EU Commission proposes new revenues for the EU budget that could include revenues from ETS trading scheme, carbon levy on imports and corporate tax."

"EU Commission proposes the EU budget could also get funding from a new digital tax."

"New proposal for the EU's long-term budget is 1.1 trillion euros over 7 years."

"EU Commission proposes to borrow and then disburse to EU countries 500 billion euros in grants and 250 billion euros in loans."

"EU Commission proposes to start repaying the borrowing for recovery after 2027, the maximum maturity of bonds to be 2058."

"EU Commission proposes new solvency support instrument of 31 billion euros."

"EU Commission's proposal on new revenues for the EU budget are in addition to the proposal for bigger revenue from VAT and a new tax on non-recycled plastics."

"EU Commission proposes 32.5 billion euros extra for the EU just transition fund for moving to a greener economy."

Market reaction

The EUR/USD pair largely ignored this statement and was last seen gaining 0.35% on the day at 1.1020.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Michael Saylor unveils Bitcoin-backed "Digital Credit" vision at Strategy World

Strategy CEO Michael Saylor delivered a keynote titled "Digital Credit" on Tuesday at Strategy World, positioning Bitcoin as the foundation of a new financial system built on what he described as "digital capital."

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.