Euro Comeback Rests on EU Leaders Agreeing on Recovery Fund
- Negotiations begin this week on the form of the bloc-wide fund
- Euro will trade at bottom-end of post-2014 range, says SocGen
A customer wearing a protective face mask hands a ten euro banknote between protective cellophane screens on a fruit and vegetable market stall at Marche Saxe-Breteuil in Paris, on May 21.
Photographer: Christophe Morin/BloombergThis article is for subscribers only.
Leaders in the euro area need to make its widely-touted recovery fund a reality to revive the fortunes of its battered currency.
The euro’s comeback was threatened after the so-called frugal four -- Austria, Denmark, Sweden and the Netherlands -- countered a joint proposal by France and Germany for a 500 billion euro ($548 billion) fund by suggesting aid in the form of loans, not grants.