1/EUROPE: FINAL COUNTDOWNSouthern European bonds and the euro have rallied hard in the two months since France and Germany mooted a 750 billion-euro ($848 billion) post-COVID-19 recovery fund. But differences remain on whether the fund should be based on loans or grants; if the proposal stumbles, markets will take it badly. Even a watered-down deal would be significant as it will allow the bloc to move towards mutualising debts. Decisive EU action to revive the economy would ease pressure on the bank to deliver more stimulus. It might then consider buying more supranational debt for its asset-purchase scheme, as a recovery fund would help make the EU the region's biggest supranational issuer.

Source: International New York Times July 10, 2020 13:18 UTC