Small Steps Toward a Post-Pandemic Recovery: Brussels Edition

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The coronavirus has shattered the EU’s three-decade-old strategy for keeping its debt in check, and a potentially contentious discussion on what should replace it will have to be had at some point. Yesterday’s cut to the 2021 growth outlook only underscored the challenge faced by member states in managing their finances. With interest rates at rock bottom, economic realities have also changed dramatically since the current goalposts were conceived. Nevertheless, a north-south divide that was well visible during talks on the recovery fund will almost certainly open up again, leading some to believe the bloc may just have to do with small steps for now.