Whilst the European Commission met yesterday, the euro fell. Announcements today halted the EURUSD.
After what was supposed to be a two day meeting, which concluded a day early, European Commission president, Donald Tusk acting in his first meeting as chair, reported to the press saying, “We focused on Europe's two most important challenges: boosting investment, and the situation at our eastern borders.”
Tusk noted that areas of discussion primarily focused on “injecting public and private money in strategic projects,” citing this as the “the best thing to speed up Europe's economic recovery.” This related to the urgent set up of the mobilization of the European Fund for Strategic Investment plan to pump €21 billion into the market that will result in projects worth €315 billion. The schedule to do this is over the next two years.
Tusk said, “To achieve this, leaders want the Fund to be in place by next June. Also the European Investment Bank got the green light to start doing its own part from January on. In the weeks ahead specific legislation will be discussed; but today leaders gave the direction and set the timeline. We did not discuss any geographical or sectorial distribution. It is for private investors to back the most promising projects. The European Council will monitor all this in the months ahead.”
The second main item on the agenda focused on what Tusk described as, “the situation at our eastern borders.” He noted that, “For over a year now – from Maidan to the Minsk ceasefire and beyond… – the European Council's response has been event-driven.” Now it seems for the first time that the EC are willing and ready to provide financial support to Ukraine.
This new outlook is part of a larger policy effecting Europe and Russia, pertaining to, “Russia's policy towards its neighbours and our strategic response.” Discussions on this subject will resume in March at the next EC meeting.
Tusk finished his statement on Russia saying, “It is obvious that we will not find a long-perspective solution for Ukraine without an adequate, consistent and a united European strategy towards Russia. Equally, a modern, safe and independent Ukraine is the most important element of this strategy. Our approach must be in line with our ambitions and potential. We must go beyond being reactive and defensive. As Europeans, we must regain our self-confidence and realise our own strengths.”
MT4 chart: EURUSD
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