This agreement will be seen as a pivotal moment in Europe’s journey,
The European Union just reached a historic deal on a stimulus plan whose purpose is aiding the economy of the bloc to recover, after five days of negotiations.
“This agreement sends a concrete signal that Europe is a force for action,” commented the Summit Chairman, Charles Michel during a news conference, “It is about a lot more than money. It is about workers and families, their jobs, their health, and their well-being. I believe this agreement will be seen as a pivotal moment in Europe’s journey, but it will also launch us into the future,” he added.
Under this new deal, the EU members would be entitled to access to 390 billion Euros in grants and to 360 billion in repayable loans. Originally the deal would include 500 billion in grants but the northern European countries opposed the idea, as, in general, they contribute more money to the scheme.
The French President, Emmanuel Macron called the deal “historic” and added that with this plan the European Union would nearly double its budget over the next three years. The European Commission President, Ursula Von der Leyen praised the achievement, saying that it’s a huge milestone in terms of the future of the bloc.
In other news, the United Kingdom’s Office for National Statistics reported that Britain’s government borrowing increased to 127.9 billion pounds in the first quarter. The public sector net debt stood at 1.984 trillion pounds, which is equivalent to 99.6 percent of the Gross Domestic Product.
In light of the pernicious effects of the advance of the coronavirus pandemic in the UK, some analysts expect the British government to further expand its fiscal stimulus package by the end of the year.
The European stock markets closed on the positive territory yesterday, as the Euro Stoxx 50 gained 0.68 percent and closed at the 3,388.34 level, followed by the DAX which gained 0.99 percent, closing at the 13,046.92 level. Conversely, the CAC 40 added 0.47 percent, closing at the 5,093.18 level, while the IBEX 35 gained 0.51 percent, closing the session at the 7,478.00 level.
By 6:59 GMT the Euro went up by 0.01 percent against the US dollar, hitting the 1.1446 level. Conversely, it gained 0.07 percent against the Japanese Yen, hitting the 122.82 level. On the other hand, it went down by 0.02 percent, falling to the 1.0740 level.
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Yesterday the oil markets rebounded after the markets learned that human testing of the Covid-19 vaccine that is being developed by the University of Oxford together with AstraZeneca Plc is showing promising results.
The West Texas Intermediate crude oil futures advanced 0.12 percent, closing at the 40.83 level. Conversely, the Brent oil futures gained 0.16 percent, closing the session at the 43.20 level.
The coronavirus pandemic continues advancing around the world, infecting around 14,860,511 individuals as well as killing 613,389. The United States leads in the number of infections, with 3,961,556 as well as a death toll of 143,835. Some western countries are already reporting a peak in the number of infections.
The US stock indices also gained territory during yesterday’s session. The Dow Jones Industrial Average advanced by 0.03 percent, closing at the 26,680.87 level. Conversely, the S&P 500 gained 0.84 percent, closing at the 3,251.84 level, while the Nasdaq100 added 2.88 percent, closing at the 10,952.08 level.