Comments from the ECB's Villeroy
- EU governments now need to implement the recovery plan to which they have agreed and they need to do so urgently
- Main issue is not the scale of our fiscal response but the speed of its execution
The German constitutional court is a new holdup in EU recovery fund and we will shortly find out how big of a headache it will be. Meanwhile the eurozone will watch Biden announce another $2.5 trillion infrastructure plan today, which will probably pass as Europe continues to dither. At what point do you realize that your institutions don't work?
In any case, the euro is holding up ok today after several days of selling. It's up 10 pips to 1.1728.
