Recovery Fund latest publications
Since March there have been large movements in the financial markets, and this is no less the case for the foreign exchange market and, in particular, for the euro. It has appreciated 6% versus the dollar since January, and was up 11% from the lows of March to USD 1.20 at the beginning of September.
The European Union has resumed one of its most ambitious projects: the Capital Markets Union. The European Commission's first action plan was announced five years ago (2015), but no real progress in the integration of the European markets has been seen since then, despite the great legislative effort of recent years.
The response to the crisis has been overwhelming, and spending will increase to around 50% of GDP. Spain needs to establish a culture that demands greater accountability on how budgetary resources, and resources from the European recovery fund, are allocated.
We knew that things in Europe might not be easy after the summer given the risk of a second wave of the pandemic. But the new outbreaks—which everyone knew were coming—may have arrived earlier than expected.
August 12, 2020
Spain | The Mediterranean regions, protagonists of a more markedly V-shaped recovery
The spread of COVID-19 has had an unprecedented impact on the Spanish economy on various fronts. The lockdown that began in March did not last 15 days as initially thought, but ultimately went on for over 90 days.
Public expenditure in Spain could grow between 10 and 11 percentage points (pp) of GDP in 2020, surpassing 52% of GDP, according to BBVA Research forecasts. This increase is justified by the atypical situation that the Spanish economy is experiencing due to COVID-19.
On July 21, the Council of the European Union adopted the Next Generation EU (NGEU) Recovery Plan, worth EUR 750 billion, for the coming years. It is equivalent to 5.4% of the EU's GDP, and almost EUR 1700 per capita.
The European Union has reached a deal on its recovery fund, Next Generation (NGEU), that will play a significant role in the future of European economies. Difficult negotiations have shown that divisions remain but the outcome has been very positive.