UE releasing new stimulus on DEC 10th

The current context of falling consumption, increased infections, increased restrictions and advances – or not- in the effectiveness of vaccines, are placing European nations in the face of decisive economic decisions.  However, the final meetings to reach an agreement between the European Union and the United Kingdom are in the decisive process. Reaching an agreement and getting it ratified in both parlaments will be a race against time and positions do not yield. Failure to reach an agreement on time would be a serious blow to the parties.

Carolina Giudici Content Manager

Last meeting of the European Central Bank was released. They agreed on a new stimulus package starting in December, which will mainly consist of the purchase of subsidized bonds and loans for banks. On December 10 they will meet again.  Lagarde anticipated that the main measures will be the Emergency Purchasing Program for Pandemics and Long-Term Refinancing Operations. 

The Chancellor of Germany, Angela Merkel, announced measures to give support and rescue to small and middle companies, The measures, for an economy already contracted, will be financed by taking on a debt of 218,000 million euros.  According to estimates by the Office for Budgetary Responsibility,  the United Kindom ecnomy would not be able to recover to pre-COVID-19 levels until 2023. In turn, the unemployment projections would reach a maximum of 8%. In this context, they also foresee the taking of debt for $ 526 billion dollars, equivalent to 19% of GDP (the highest recorded in decades) and placing a record of 485.5 billion pounds of bonds in this fiscal year.

Tensions still persist around the trade agreement between the EU and the UK. The three controversial points are: guarantees of fair competition, governance and fishing. With regard to fishing, the EU proposes that between 15% and 18% of the value of the fishing quota that European fleets catch in British waters be returned to the United Kingdom.