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The second wave of debt: EU Covid-19 funding and market reaction
EU and Eurozone member states have learnt their lesson from the previous crisis. If the monetary union is to survive the current economic shock, its response needs to be forceful and coordinated. Between April and July, member states agreed on a range of crisis-fighting tools to support countries with the least fiscal space. Most of these entail a degree of joint issuance from existing EU and Eurozone supranational entities. While these entities are already known issuers on the debt market, the new crisis-fighting apparatus means a step-change in the amounts to be raised. Below, we detail our debt sale expectations ... (full story)