EU's Dombrovski's: EU ready to activate clause to allow more fiscal support

The European Commission is ready to activate the clause that would allow them to ıntroduce more fiscal stimulus by suspending member states' budget commitments, European Commission Vice President Valdis Dombrovskis said on Friday.

"The EU is not suspending the Stability and Growth Pact but using its flexibility," Dombrovskis added.

Market reaction

The relief rally witnessed in major European equity indexes continues to gather pace. As of writing, the Eurostoxx 50 was up 9.3%, the UK's FTSE 100 and Germany's DAX were adding 7.6% and 7.7%, respectively.