The euro zone’s looser public spending policies to counteract the economic damage of the Covid-19 pandemic should stay in place until the recovery is “firmly under way” including into 2022, the Eurogroup declared on Monday. “Supporting economic activity and mitigating scarring effects through timely, temporary and targeted measures is key to longer-term fiscal sustainability. Premature withdrawal of fiscal support should be avoided. He suggested that an over-focus on curbing public spending and controlling debt had been self-defeating in the euro zone’s last crisis, as it had depressed growth. ‘Support growth’“The best way to support debt sustainability is to support growth,” Mr Gentiloni said.

Source: The Irish Times March 15, 2021 19:56 UTC