Eurozone: The very difficult discussion is only starting – Nordea

EU summit did not become an all-nighter, which already suggests the heated discussions on matters that most divide the member countries were left for another time, economists at Nordea report.

Key quotes

“Discussions on the so-called Recovery Fund to support the recovery were started, but remain in very early stages and plenty of disagreements remain.” 

“The ECB’s support should be sufficient to prevent another market meltdown. However, the ECB is not happy about what the governments are doing, and Lagarde was reported to have told the EU leaders that they are doing too little too late.”

“More common decisions will be needed for the Euro-area to come out of the corona crisis in one piece. These decisions will need to include added solidarity in one way or another, and will not be easy.”