Germany and France — in what some have claimed is a breakthrough — have proposed establishing a recovery fund for countries hit hardest by the coronavirus pandemic. European Union leaders plan to meet in July on a €750 billion initiative that would involve the issuance of common debt. It would be a significant step toward closer economic ties.
The politics of the U.S.–China relationship have clearly become more complicated recently. The war of words over China’s handling of the coronavirus outbreak and the proposed new Hong Kong security law has the potential to create headwinds for the global economy and financial markets.
The economic impact of the coronavirus pandemic in Europe will be severe amid stimulus efforts by policymakers, including the European Central Bank, to cushion the blow.