The Euro Break-up Index has dropped to an historic low.
The EU may be grappling with the fallout from Brexit, but its own union appears to be stronger than ever. The Euro Breakup Index – a measure of how likely investors rate the probability of at least one member state leaving the euro area over the next 12 months – has dropped to a record low. An index measuring financial instability in the eurozone has also fallen sharply from last year.
With the region facing its worst economic downturn since the Great Depression, what could be driving such optimism? The European Central Bank’s response to the pandemic is certainly a key factor keeping investors happy. But could the rancour around the vaccination programme start to create more discord in the coming weeks and months?