Intermoney | Based on the ECB’s macroeconomic forecasts, we can extrapolate that the financing needs of the EMU countries will be around €1.5 Tr between 2020 and 2021. And if 73.5% of the PEPP continues to be used to acquire sovereign debt from the different Eurozone’s members, the programme would cover almost 65% of the needs for this year and next. All this, without taking into account the €120 Bn from the reinforced Asset Purchase Programme (APP) and the €360 Bn that it should add up to mid-2021.
EU recovery plan
An important day in Europe today. The European Commission will present its proposal for a post-coronavirus economic recovery plan. Ursula Von de Leyen will seek to find a compromise between the demands of the countries most affected by the pandemic and those of the so-called frugal countries. Instead of countries putting more money from their national coffers into the European Budget, the EC plans to finance itself with new “green” taxes that could raise annual revenues of €5-14 Bn for the EU.
The Franco-German axis is back in operation thanks to the coronavirus crisis. Yesterday, the French president and the German chancellor agreed to propose the creation of a €500 Bn reconstruction fund to the European Union (EU), far cry from the quite regularly speculated sum of around €1 Bn or €1.5 Bn. The proposal is very much in line with the recovery plan which the European executive is working on currently and is expected to be presented on 27 May.