European Central Bank (ECB) chief economist Philip Lane has said there would be no return to austerity for battered eurozone economies, but unemployment will remain elevated for years. Then, tax revenues will recover. He said that fiscal deficits – a major concern of Finance Minister Paschal Donohoe – would essentially self-correct as economies began to open up again due to more spending, high tax revenues and a decrease in government economic supports. “The large fiscal deficits essentially have their counterpart in large household savings,” he said. Mr Lane warned governments about hurting businesses by withdrawing state support too soon.

Source: Irish Independent May 11, 2021 01:38 UTC