The Euro’s winning streak has continued into early Thursday trading having started on Tuesday and has so far translated into a gain of more than 1% to the US Dollar.
The single currency’s strength results from the EU Commission’s plan to prop up the economies of its members that have been battered by coronavirus, with a total of €750 billion in the shape of grants and loans. This could be a moment of historical significance, marking the first step towards a form of pan-European mutualized debt. There are systemic unbalances within the union that can only be corrected through some form of fiscal redistribution, and this recovery fund could mark the birth of a form of European solidarity without which the viability of both the single currency and the union itself could be in question.
