ECB's Schnabel: Blocking the EU's recovery fund would be an economic disaster

The European Central Bank (ECB) executive board member Isabel Schnabel said Friday, attempts to block the European Union’s (EU) recovery fund would be an “economic disaster for Europe”.

Key quotes

“The increase in public debt is inevitable and sensible in the face of this crisis of the century, as long as the expenditures sustainably boost growth.”

“The fact that the collapse of US hedge fund Archegos Capital Management led to billions of losses at major lenders such as Credit Suisse was “a warning signal that there are significant systemic risks.” 

“The case showed that there were also “significant regulatory gaps.”

Market reaction

The euro paid little heed to the above comments, as EUR/USD remains at the mercy of the US dollar dynamics and broader market sentiment.

The spot was last seen trading at 1.1894, losing 0.15% on the day.