This envelope is in addition to the initial amount of 750 billion euros announced in mid-March by the European institution.
Central bank European Commission decided on Thursday June 4 to strengthen and extend its main emergency program intended to support the economy of the euro zone in the face of the coronavirus crisis, announced a spokesperson for the institution. The public and private debt buy-back program “PEPP”, introduced in mid-March with an initial budget of 750 billion euros, will be increased by 600 billion euros. It will be extended until “at least end of June 2021”, against the end of 2020 initially.
This plan aims not only to support supply, through the reduction of value added tax or new aid to businesses in difficulty, but also demand, by subsidies to families or even an increase in the premium. of purchase for electric cars.
Following this announcement, the euro rebounded after having started the day down against the dollar. Around 2:15 p.m. in Paris, the euro gained 0.15% against the greenback, at 1.1250 dollars. If a more accommodating monetary policy tends to weigh on the currency concerned in normal times, the ECB’s announcements have been taken as “a positive signal” by investors, commented Naeem Aslam, analyst for the Avatrade trading site. “Any support from the ECB, whether through an asset buy-back program or through aid measures, will strengthen the eurozone economy, which is on its knees”, he added.