Could the virus make the Eurozone?

Maybe. Via Bloomie:

German Chancellor Angela Merkel said she’s ready to consider joint debt issuance to help contain the impact of the coronavirus, an opening that could transform the finances of the European Union.

The idea was raised by Italian Prime Minister Giuseppe Conte on a video conference between the 27 EU leaders on Tuesday, according to a person familiar with the matter. Merkel told reporters afterward that she was happy for her finance chief, Olaf Scholz, to explore the proposal with other ministers.

…“We expect the finance ministers to discuss further on this level,” Merkel said. “I’ll talk to Olaf Scholz so that the German side can take part in this. But there are no conclusions.”

They’ve share the virus so why not share the stimulus.

This would be a fantastic financial and human good if it came to pass in Europe.

David Llewellyn-Smith
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Comments

  1. Agreed. But I think the stakes are pretty high here – in that if they CAN’T get together on this, it could actually break the Eurozone. Sort of all or nothing.

  2. Tangentially, NZ report only 20 cases. But it’s come out they’ve only done 500 tests.

    Don’t test, don’t tell.

    Worked wonders for Trump !

    • One World Order! One World Order!

      And let’s have it centered and determined by India.

      India, a country that has been masterful in their ability to control the virus; that has a population that the West is falling backwards to import and a ready-to-go diaspora that can take over global governments, business and institutions with speed!

    • Indeed. It’s called gold. A terrible shame for the Big Gov pushers and war-mongers but it may just mean we get on with doing what we should be doing and that is producing goods the world wants and needs. Shocking and controversial, I know, but what can you do.

    • How would that look after they’ve kept Greece in debtors prison for a decade?

      Or perhaps they don’t gaf…

  3. Good for the Eurozone = good for the world, too?

    Go long EUR??

    The EUR/USD cross will be interesting, as well AUD/EUR…I say this because I am, more and more, not wanting to hold anything AUD, not even Aussie govt bonds…AUD seems to be really on the nose, to the point where I am wondering if the world is losing faith in it / Australia.

    • Burb, I’m in awe of your energy but just don’t trade markets on logic — you’ll almost certainly get whip-sawed and financially decimated.

      If you’ve won the lottery, then fine, but I would stay cautious here for a time — there’ll be huge money making opportunities in the months ahead. Save your dry powder for the future. If you have a lot of AUD then yes, maybe convert a portion to USD, but remember that the Fed is likely going to attempt to make the USD ‘cheap’ to every other currency.