Investors ‘optimistic’ over recovery fund hopes

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By Lewis McLellan, Michael Turner
13 Jul 2020

The European Union leaders’ summit, which begins on Friday, should determine the approval of the bloc's planned €750bn coronavirus recovery fund. The summit is drawing the attention of investors in eurozone periphery government bonds and high grade corporate paper, particularly as the EU is far from agreeing the fund's final size.

The European Commission presented a new proposal for the EU budget on July 10, featuring a smaller budget and rebates for northern countries. However, the €750bn recovery fund remained intact, with €500bn of grants and €250bn of loans.

“There have been headlines that some countries want it smaller,” ...

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