Italy’s new government should not challenge European Union fiscal rules when it submits its draft 2020 budget to Brussels next month, the head of the eurozone finance ministers, Mario Centeno said.
Banks in the eurozone will get more time to set aside cash to cover for loans that have gone or will go unpaid after the European Central Bank (ECB) bowed to pressure from Brussels to ease its rules on the matter.
Battered by years of low interest rates, eurozone banks are looking at a multi-billion-euro consolation prize if the ECB grants them an expected reprieve from its penalty charge on deposits, according to Reuters calculations.
Long-dated bond yields in the eurozone shot higher on Monday on the back of a calmer tone in world markets and increased expectations for fiscal stimulus in Germany.
The plunge in eurozone business activity caused by lockdowns imposed to stop the spread of the coronavirus eased sharply last month as more businesses reopened and people ventured out, a survey showed on Friday.
The new forecasts see the eurozone economy bouncing back by 6.1 per cent in 2021, still leaving the region worse off than before the countries were forced to implement lockdowns in an attempt to contain the spread of COVID-19.
The European Central Bank (ECB) has launched a broad review of its policy on Thursday that is likely to see new President Christine Lagarde redefine the ECB’s main goal and how to achieve it.
The eurozone’s trade surplus with the rest of the world ballooned to 21.2 billion euros ($25 billion) as the bloc’s drop in imports of goods outpaced the fall of exports amid a global slide in trade due to the COVID-19 pandemic.