Reuters reports that ECB policymaker Klaas Knot said the European Central Bank's emergency bond buying scheme is a temporary tool but Europe is still in an emergency situation and the outlook is actually darkening as the pandemic spreads.

"It's of course clear that recent developments have not been good," Knot said. "We have a second wave, it will weigh on the economic outlook, it will weigh on the price stability outlook."

Knot added that banks are bound to take a hit from the crisis as their loan books deteriorate, making them difficult to extend credit. That makes additional funding mechanism necessary, a key argument to kickstat a stalled discussion on Europe's capital market union.