EU official: 'Big divide' between member states on recovery aid – Reuters

In light of the ongoing clash over the European Union (EU) coronavirus recovery fund, an official with the bloc said on Wednesday, there is a “big divide” between EU member states on whether any coronavirus recovery aid should be handed out to member states as subsidies or loans, as cited by Reuters.

Key quotes

“For some member states it is important to have grants or subsidies, while for others it can only be loans. There is a big divide and we need to find the right balance.”

“The question is what tools we use for solidarity - eurobonds or something else.”

Earlier today, El Pais reported that the German Chancellor Angela Merkel and Spanish Prime Minister (PM) Pedro Sánchez have opened a path to agreeing on a European coronavirus crisis fund. 

The EU leaders are scheduled to meet via videoconference on Thursday.

Market reaction  

EUR/USD is ranging within a 30-pips band, now managing to hold above the 1.0850 level, as the euro ignores the conflicting headlines on the EU recovery fund.