Brexit, the pound, and the ECB’s possibly risky verbal balancing act

This week saw Brexit tensions rise once again and we think there's at best a 50-50 chance of a deal between the UK and the EU. Read our reaction and download the podcast. Christine Lagarde engaged in a possibly risky verbal balancing act at the ECB. And what can other government's learn from the Dutch on spending and austerity?

In this bundle

United Kingdom

Sterling unprepared as UK-EU trade deal hopes fade

The chances of a UK-EU trade deal being struck are now 50:50 at best, given the events of the past few days. The very limited risk premium factored into…

ECB: The risky verbal balancing act

The ECB carried out an interesting verbal balancing act, which doesn't come without risk. We think the ECB seems to be concerned about the stronger…

The Netherlands

Covid-19: Spending, austerity and the Dutch experience

Dutch public finances provide ample room for temporary fiscal stimulus in the Covid-19 crisis and support for fiscal austerity is waning among economists.…

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Striking differences in Eurozone business borrowing during Covid-19

Eurozone businesses borrowed heavily in the early lockdown months, but liquidity needs have come down substantially since then. Differences between…

Trade

The threat to world trade from Covid-19 subsidies

Governments worldwide have implemented subsidies to rescue their economies from the effects of Covid-19. These measures provide essential support to…

Don’t be fooled by public consumption figures

Differences in measuring public consumption have exacerbated growth differentials in Europe. France and the UK, in particular, are likely to see a…

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