Global rating agency Moody’s recently pointed that the European Union (EU) recovery funds will be beneficial for southern Europe even as its long-term benefits are more uncertain.
The rating giant detailed the analysis while saying, “Greece, Italy, Portugal and Spain to receive nearly half of all grants and loans in EU recovery fund. Along with regular EU funding, the associated investment will lift growth, reduce debt and improve debt affordability.”
It’s worth mentioning that the bloc is on the way to economic recovery and has fewer odds suggesting reflation risk, unlike the US, which in turn suggests the relief package as EUR/USD positive, especially when the US dollar is near the multi-day low.
Read: EUR/USD settles above 1.2200, focus shifts to EU inflation data
