The Euro continues to feel the pressure against the British Pound and the US dollar and analysts see more weakness ahead over concerns that there is not enough cooperation and effort between the Eurozone members to establish an economic plan on fighting the coronavirus.
Governments around the world such as the US, Australia and the UK have pumped money into their economies to fight the devastating effects that the coronavirus has caused to their economies but it seems as if the Eurozone members are unable to find common ground
There is talk of a “coronabond” which would be issued by all Eurozone states to raise money for their local economies which may go some way to dampening the effects of the virus on their economy but at the moment, countries such as Germany and Austria are resisting the idea. Their support will be crucial if any deal is to eventuate.
"In Europe, leaders are discussing ways to support the worst hit European countries, like Italy and Spain, ahead of the Eurogroup meeting. Proposals range from common debt issuances like Corona bonds to setting up an EU coronavirus support fund. Watch out for signals from European leaders, notably the German and French side," says Jens Peter Sorensen, Chief Analyst at Danske Bank.
The strain this current situation has put on the EU has once again raised fears about the breakup of the single European currency and that some countries such as Italy may choose this route as a way to save their economies and pursue their own agenda without following the stringent EU rules.
"The crisis in Italy has also rekindled fears about a breakup of the single currency. In an environment with at least a residual focus on self-imposed constraints such as EU budget rules and ECB issuer limits, these fears could well grow further in coming weeks." says Jan Hatzius, chief economist at Goldman Sachs.
It seems for now that the only way forward for the Euro is if the member states band together to pull through this crisis which might begin if they can agree as a starting measure to issue the coronabonds and breath some life into their respective economies
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