The Day at a Glance | July 20 2020

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Europe takes steps towards approving fund for recovery

European leaders edge closer to approving a long term recovery fund for the block`s economy. The main countries that opposed the proposition presented by the European Commission (Austria, the Netherlands, Sweden and Denmark) have yielded in giving 390 billion euros in aid financed by collectively issued debt; even though the details regarding the monitoring of the use of these funds must still be discussed, as well as defining whether or not conditions may apply. Spain and Italy would be the main countries that would benefit from this, which have been the most affected by the virus and have a smaller fiscal margin. The negotiations, which started at the end of las week, will extend until today for an agreement to be secured. For the rest of the resources considered in the package (750 billion in total), a credit program has been proposed in which member countries of the European Union would have access to. According to statements made by the negotiation`s participants, a clear road to an agreement is now visible. The Euro and the region`s equity markets have reacted positively to the news.