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In Domestic Affairs

UK is much better than EU in handling COVID-19 crisis, after all

27th April 2021 Matthew Patridge

UK is much better than EU in handling COVID-19 crisis, after all Pin It

The UK has so far been much more successful than Europe in terms of the number of vaccinated. As a result, pubs have recently been opened up again in England, while in France a tighter lockdown has been in place since the beginning of April.

The UK economy is therefore expected to benefit more from reopening than the EU, which will also accelerate the reduction in quantitative easing.

It can be argued against this that the euro area as it now appears is on the eve of a vaccination catch-up, especially in view of the shipment of vaccines that is expected to come this way in the near future.

In addition, the UK is experiencing the aftermath of Brexit, whose economic impact will last for years to come. This gives additional reason to believe that the British central Bank will be cautious about phasing out the cheap money supply policy.

In addition, recent figures show that inflation is rising in the EU, while it is falling in the UK. This is also in favour of the ECB being able to stop quantitative easing earlier, as the time to raise interest rates approaches as inflation rises faster.

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