ECB's de Cos: Speed and scale of response to crisis will determine strength of recovery

Joint fiscal actions in face of common shock would not only ensure maximum efficiency but embody solidarity values of the European project, European Central Bank (ECB) Governing Council member Paolo Hernandez de Cos said on Friday. 

Additional takeaways

"Coronavirus outbreak is likely to be transitory, but speed and scale of response to the crisis and the ability to work together will determine the strength of the recovery."

"Calling for the strengthening of European monetary union with a comprehensive package of common safety nets, reinforced and effective coordination at the national level."

"Calling for common actions to address capacity to share budgetary risks within the EMU, and more broadly the EU."

"Common safe asset would be ideal, providing a neutral source of funding while sending a strong signal of unity and goodwill."

"Calling for full mutualisation of the single resolution fund, duly reinforced by the European Stability Mechanism as the common backstop."

Market reaction

The EUR/USD pair inched higher in the last minutes amid broad-based USD weakness and ignored these comments. As of writing, the pair was up 0.25% on the day at 1.0805.