FRANKFURT: Europe’s political fog may finally start to lift in the coming week, with the French presidential election and the European Union’s summit on Brexit strategy putting the bloc on a new path after months of uncertainty.
Eurozone purchasing managers’ index (PMI) data, a strong indicator of growth, climbed to six-year high in April, with French business activity also blowing past expectations.
Board member Benoit Coeure, a top lieutenant of ECB President Mario Draghi, has already broken with the bank’s long-standing line that economic risks are tilted to the downside, arguing this week that they were broadly balanced.
They are also likely to seek cash from London to cover a wide range of existing commitments, ask for a schedule of annual payments, and will want the European Court of Justice to maintain a jurisdiction over certain commitments.
Though Britain’s own election in June suggests that no real negotiation is likely to happen for months, clarity on the EU’s own demands could also aid growth.