Eurozone Plunge Eased Amidst Reopening Operations

The plunge in eurozone business activity caused by lockdowns imposed to stop the spread of the coronavirus eased sharply last month as more businesses reopened and people ventured out, Reuters reported on Friday, citing a survey.

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A June Reuters poll predicted the economy contracted an unprecedented 12.5% last quarter but would grow 7.9% this quarter.

The European Central Bank (ECB) expanded its pandemic-related bond purchases (PEPP) to a total of 1.35 trillion euros last month. 

Although Bloomberg is reporting that there’s a disagreement between the ECB policymakers regarding the way they should distribute their PEPP and whether it should be weighted towards the worst-hit countries in the bloc during the pandemic.

Citing the sources familiar with the matter, this dispute could threaten to undermine the PEPP stimulus hereafter.