Europe struggling between COVID and Brexit: all the uncertainties



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L ‘Europe observed special gods markets and not only that: politicians, health experts and economic analysts continue to pay attention to the old continent.

The pandemic once again puts EU countries to the test. the emergency shutdown Total wants to be avoided to avoid an economic catastrophe. Meanwhile, however, restrictive measures are spreading everywhere: in the UK it is closing; France is under a curfew; in Italy, the Regions are tightening the measures with night blockades; Germany is in trouble; Belgium is assaulted by the second wave.

A bad scenario, to which the spectrum is added Brexi. There is no agreement: what will happen?

Europe: mixed signals for the markets

In Europe, markets are expecting signs of recovery, also considering a timid optimism from the United States about the possibility of reaching an agreement on the stimulus plan before the elections.

The old continent, however, remains weakened. The most difficult problems are all internal. The resumption of coronavirus with so much aggression it is shaking the recovery plans, in a scenario in which the fourth quarter is estimated at discount by some analysts forEurozone.

The fear is the double recession. If we have to once again limit business exercises and production and trade rates, what will happen? Recovery needs national fiscal stimulus, repeats ECB.

Also, lurk the nightmare of Brexit. Negotiations are tense and Johnson’s threat to leave the Union without a deal is becoming dangerous.

A Brusselshowever, they hope to reach an agreement in mid-November. The EU’s strategy, according to some officials, would be to launch conciliatory messages, such as: making the UK understand that it is a valid negotiating partner; send a draft of the text to demonstrate the intention to make the agreement; accept a compromise on the thorny question of state aid, which has not happened so far.

But the road ahead is full of obstacles and uncertainty dominates all fronts. Europe, in terms of markets and politics, seems to be under pressure.

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