The Day at a Glance | March 23 2021

The Top

· Biden administration prepares 3 trillion dollar economic plan.

· ECB increased the rate of bond purchases last week to contain the rise in interest rates.

· Oil drops under $60 dpb after the announcement of new quarantine measures in Germany.

· The Central Bank of Spain decreased growth estimates for the country`s economy (6% vs 6.8% prev.) after a slow allocation of the European recovery fund`s resources.

Economic environment

President Biden`s advisers are considering a long-term, 3 trillion dollar economic plan. The plan is focused on the investment in infrastructure plan, fighting climate change and improving education and health services. The plan is expected to be shown to the President this week for it to be discussed and modified before its public unveiling in April: the goal is to increase US economic competitiveness through the reconstruction of its infrastructure under principles of sustainable development in addition to boosting technological development to overtake China, it`s main competitor. The plan comes along with a project for its financing, whose proposals include increasing corporate taxes and tax rates for high-income individuals – the rise could be the largest seen in the United States since the 90`s. Republican legislators have expressed their opposition to increasing taxes and allocating a greater part of resources towards renewable energies.