Over the last couple of years, Europe has survived many critical situations associated with the migration crisis, the exit of England from the Eurozone, populist and pandemic COVID-19. Jacques Delors is a former President of the European Union, indicates that the differences between Eurozone countries, relative to combat the coronavirus can lead to fatal consequences.
The root of the problem lies precisely in the fact that European leaders refuse to coordinate their fiscal policies, which led to the violation of the Pact of stability and growth against the need to make structural changes to achieve budget goals. This is what led to what most analysts predict the crisis.
During the last crisis it was much easier, as the European Central Bank has donated and supported the banking and financial system with cheap loans, which allowed the economy to quickly recover. But what is happening now during the pandemic of coronavirus that is much more difficult and uncertain.
In Brussels have already begun to say that the restoration of the economy of every country in Europe will be significantly different, and that will jeopardize the unity of the European Union market. The EU Commission noted that the region is the situation that will be “unprecedented economic shock since the great depression”.
5 may 2020 Supreme court of Germany declared that the actions are contrary to the fundamental law of the country that shocked not only the economic sector and political circles. The court stated that the programme of the ECB does not comply with the principle of nationality, and of the Central Bank and the German government was obliged to consult the ECB on all the related issues.
At the same time, the European Central Bank responded quickly, arguing that they derive from the provisions adopted by the European court rather than national. At the moment, the disagreement leads to regulatory and political differences, although countries need to work together. Such tensions between States cheny and other European institutions leads to strong pressure on the Euro. So it is clear that the long-term decline of the Euro against the U.S. dollar is likely, confirmation of this would be the return of this pair to significant long-term horizontal support level 1,05196.