“There is no probability of deflation, there is very low probability of recession, there are no threats of de-anchoring of inflation expectations,” Mario Draghi said on Thursday. The governor of the European Central Bank announced once again – as he did in March – that it will delay the rate hike at least until 2020 and kept all options open, especially in case economic prospects deteriorate. ECB’s decision is in line with those of other central banks in the world. The Fed has just opened the door to a rate cut, something that Australia and India have already done.
Intermoney | In 2018, the number of foreign direct investment (FDI) projects completed in the Old Continent (according to a survey by EY) fell by 4%, even if the falls were greater in the UK and Germany where the fall was about 13% compared to stability in France. However, the countries with the biggest falls were Italy (-63%) and Ireland (-52%).
Julian Göpffarth via Fair Observer | The Green success in Germany hardly comes as a surprise. While in the past years the rise of the far-right Alternative for Germany (AfD) dominated German politics, more recently the Greens’ consistently strong performance in the polls pointed to a trend almost diametrically opposed to the AfD’s nativism. The Fridays for Future demonstrations for a more determined political action against climate change were particularly strong in Germany. They indicate that a new generation is entering German politics. In opposition to the AfD, this generation is pro-European and anti-nationalist. But, like the AfD, it is a trend against politics as usual.
Morgan Stanley | Fitch has raised its rating perspective for Portugal to positive. This was unexpected and seems to support the market thesis that Portugal’s fundamentals are at similar levels to Spain and Italy. Our macro analysts agree but see posible downside risks.
Link Securities | According to Bloomberg, citing sources close to the issue, the European Commission is considering opening disciplinary proceedings against Italy next week because of its inability to control its debt.
Shaun Riordan | The elections to the European Parliament in the UK were always something of a farce. Because of the inability of the British political class to decide what kind of Brexit it wanted, if indeed it wanted Brexit at all, British voters were forced to elect members to the parliament of a Union which, in theory at least, they will leave in five months. But they were also something of an anti-climax.
Ana Fuentes | In Spain, the results have been very markedly pro-European and the Socialist Party is the one that will contribute the most MEPs in Strasbourg. For some analysts, it is a golden opportunity that the government of Pedro Sánchez should take advantage of to increase the Spanish weight in the decisions, instead of having to be always subordinated to the Franco-German axis.
Alvise Lennkh (Scope Ratings) | These elections to the European Parliament will show whether the anti-system and eurosceptic parties have got stronger at the expense of traditional pro-European parties, which could have significant implications for how the EU functions over the next few years.
Tatiana Coutto via The Conversation | The European Parliament elections are not unlike cricket. Both can last for quite a few days and it can be pretty hard to understand the rules.
Lidia Conde (Fráncfort) | Daniel Dettling is professor, editor and president of the Future Institute of Berlin Zukunftspolitik, one of the most prestigious European think tanks in Euro trends and futures thinking. Advises parties, ministries and companies. In his last book, “An agenda for the Neorepublic”, he focuses on the configuration of a just future.