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Revenues are decreasing and dept rising. What will happen with EU?

Almost all euro area countries face a massive drop in public budget revenues on the one hand, and a forced fiscal impulse to mitigate the effects of the corona crisis on the other. They enter this unexpected phase with completely different starting conditions.
Revenues are decreasing and dept rising. What will happen with EU?
Almost all euro area countries face a massive drop in public budget revenues on the one hand, and a forced fiscal impulse to mitigate the effects of the corona crisis on the other. They enter this unexpected phase with completely different starting conditions. Some – budgetarily responsible – are significantly better off in terms of debt than others who have been stuck in debt for a long time. Conditions also differ between member and non-member countries of the Union, which can (cannot) rely on their debts to be gradually bought by the ECB.

 

Deep deficits is as inevitable as a lower public debt due to lower revenues and higher expenditures. Overall, at the end of 2019, the economy of the EU countries was rather better and 13 of the 21 number-capable countries were even in surplus with the leading Denmark (+ 3.7% of GDP). The ECB’s portfolio, which currently includes bonds worth less than EUR 2.7 trillion, will undoubtedly continue to grow rapidly, as will its de facto role as a lender of last resort. It already holds a fifth of the public debt of eurozone countries, some even more than a quarter.

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FedEx surprised Wall Street with stronger-than-expected earnings

FedEx surprised Wall Street with stronger-than-expected earnings

The U.S. package delivery giant FedEx (NYSE: FDX) reported better-than-expected fourth-quarter earnings results on Tuesday after the market close. While the company reported a loss of $334 million in its fiscal fourth quarter but its revenue surpassed the expectations as the Covid-19 pandemic continues to boost the online shopping.