Germany has reportedly agreed to back joint EU debt to tackle the energy crisis, Bloomberg reported on Monday. 

Last Tuesday, European Economic Commissioner Paolo Gentiloni and Internal Market Commissioner Thierry Breton called for joint borrowing to finance the response to the energy crisis in the euro area. German Finance Minister Christian Lindner, however, argued that a joint debt would not be the answer to the current crisis, which was very different from the one caused by the coronavirus pandemic.

Market reaction

With the initial reaction, EUR/USD pair jumped above 0.9740 before quickly retreating to the 0.9700 area.