EU to propose visa-free travel for Turkey

This week Brussels will propose visa-free travel for all Turks, permitting an overhaul of party funding and terror laws. Joining the Schengen area was offered to Turkey if they dramatically cut migrant flows and took back all the migrants that had arrived in Greece over the last few months. Ukraine, Kosovo and Georgia will also all be considered for visa rights at the same time. If all the EU’s 72 eligibility clauses by the countries are met the decision will be approved as early as June, meaning more than 100 million more people will have new access to the free movement agreement.

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Trouble brewing in Germany

The German Finance Minister Wolfgang Shäuble has been very out spoken in the last few weeks as German savers are suffering heavily from the 0% interest rates currently implemented by the ECB. Whilst an unsurprising problem in a global climate that sees very low interest in multiple economies, it highlights the fact that German economy is being held back due to other Euro nations.

Whilst Mario Draghi was quick to point out that the European Central Bank is mandated for the whole of the EU and has no political ties, it does suggest the Eurozone’s engine room maybe losing patience. Draghi in a speech yesterday came out fighting pointing out that Germany in fact was part of the problem with regards to the low interest rates.

Germany have been storing a large surplus and not investing enough, therefore the ECB charging them through negative deposit rates for keeping money stored away will help find the solution to low interest rates. Whilst it’s likely the Euro will strengthen against Sterling over the coming months due to Brexit, the underlying issues with having very strong economies and broken economies sharing the same monetary policy will eventually become more prevalent.

Eurozone Data

Today the European Commission will release economic growth forecasts. Over the course of the week there is Markit manufacturing and services releases for all the major economies, as well as the trade balance for France and Retail Sales for the whole Eurozone. Wednesday also brings the Non-Monetary Policy ECB Meeting which has the potential to create volatility depending on the outcome.

Todays report should give you a fresh overview of the current situation within the EU. If you have requirements for Euros in the neat future, speak to one of our Brokers on 01494 725 353 or email me here and I will be happy to assist you further.

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