EU: An economic, as well as a monetary, union? – by John Palmer

There is not much of a market just now for optimism about our economic, social, political or environmental future. In the wake of the Covid-19 pandemic, we face the worst economic crash in more than 100 years and potential climate-change disaster. But the outcome of the marathon Brussels summit heralds a strikingly encouraging new direction for the European Union.

The significance of the five-day European Council is not simply the sheer size of the €1.2 trillion stimulus to be given the EU economy but the unprecedented scale of the collective borrowing the union will undertake on world financial markets, to finance that recovery strategy. Of the €750 billion to be invested in post-pandemic economic recovery, an unprecedented €390 billion will be in grants, not repayable loans.

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An economic, as well as a monetary, union? – John Palmer

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EU Summit: EU eyes first face-to-face summit in months to haggle over budget

EU leaders may meet for a face-to-face summit in the coming weeks to bargain over the next joint budget and a linked coronavirus recovery fund, suspending lockdown rules imposed to contain the pandemic, diplomats and officials said.

The European Union has struggled to run on video conferences since going into a gradual lockdown in March to curb the spread of coronavirus, which has ravaged the EU’s economy and thwarted regular ga

EU eyes first face-to-face summit in months to haggle over budget - Reuters

Global Warming: Europe Set to Overhaul Its Entire Economy in Green Deal Push - by Ewa Krukowska and Nikos Chrysoloras

The European Union is gearing up for the world’s most ambitious push against climate change with a radical overhaul of its economy.

At a summit in Brussels next week, EU leaders will commit to cutting net greenhouse-gas emissions to zero by 2050, according to a draft of their joint statement for the Dec. 12-13 meeting. To meet this target, the EU will promise more green investment and adjust all of its policy making accordingly.

Read more at: Europe Set to Overhaul Its Entire Economy in Green Deal Push - Bloomberg

EU Summit: BREXIT EU LEADERS AGREE- Irish backstop should be temporary

EU summit: EU leaders agreed Irish backstop should only be temporary

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https://www.euronews.com/2018/12/13/eu-summit-brexit-set-to-dominate-meeting-of-european-chiefs-in-brussels

Brexit fears stalk currency markets ahead of EU summit - by David Oakley, Elaine Moore and Roger Blitz

To be or not to be

Investors are betting that sterling is heading for another big tumble as currency markets are gripped by Brexit fears.

Net short positions on the pound have increased to the highest level since the summer of 2013, according to data from the US Commodity Futures Trading Commission.High quality global journalism requires investment.

With prime minister David Cameron expected to announce the date for the vote soon, possibly at the EU summit this week, some investors are predicting a rocky ride for sterling in the currency markets in the next few months.

The pound has fallen about 8 per cent since the middle of November on a trade weighted basis, with investors citing the uncertainty surrounding the Brexit vote, which could come as early as June, as one of the main reasons for the weakness in the currency.

“We need to be prepared for a choppy market,” said James Maltin, investment director at wealth manager Rathbones. “The Brexit debate may be about to heat up. It is yet another uncertainty out there that could hit the UK markets.”

Some analysts fear a potential Brexit could spark a recession, with Nomura, the Japanese bank, warning that the pound could fall 10 per cent to 15 per cent if overseas investors prove unwilling to finance Britain’s current account deficit.

Mark Carney, governor of the Bank of England, warned in January that concerns about Britain’s exit from the EU could test “the kindness of strangers” that the country relies on to fund its hefty current account deficit with the rest of the world.

Britain has a relatively large current account deficit of 3.7 per cent of gross domestic product. The worry is that overseas investors, which hold £427bn in UK government bonds, or a quarter of the market, might start to sell, putting further pressure on the pound.

Read more: Brexit fears stalk currency markets ahead of EU summit - FT.com