Lagarde Called On Governments To Maintain Policies To Support The Economy By 2022

2021-02-10   |   by CusiGO

The president of the European Central Bank (ECB) warned that with the progress of vaccination and the lifting of restrictions, Europe’s economy is expected to recover strongly in the second half of 2021. Financial support is still needed this year and “may go further.”, She doesn’t think it’s time to worry about inflation.

In an interview with the economist, the president of the European Central Bank argued that fiscal policy needs to continue to support the economy and protect workers and businesses during 2021, in order to make progress in vaccination and gradually lift restrictions. The governor of the Central Bank of the euro zone has urged EU governments to speed up the process of approving the agreement, which will allow the resources of the recovery fund to be disbursed in 2021, because “all Member States are playing games,” she said.

“Countries should continue to provide financial support to economies at least in 2021 and beyond, depending on the impact of the epidemic and the development of vaccination,” Lagarde said. The former French Minister and former president of the International Monetary Fund (IMF) reiterated that the European Central Bank is willing to maintain a loose monetary policy position and provide favorable financing conditions for the whole euro zone “without discrimination”.

Lagarde defended the flexibility of the European Central Bank’s pandemic emergency procurement plan in March 2020 to deal with the impact of the crisis on the financial stability and decentralization of the eurozone, noting that the agency would make full use of the plan if necessary. It also opens the door to expanding its scope when necessary and not making full use of it when favourable conditions permit.

“It’s going to take a while for us to worry about inflation,” Lagarde said after admitting that the data at the beginning of the year were better than expected.