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3/3, 4:36 PM (Source: TeleTrader)
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EU: Removing support too quickly policy mistake

European Commissioner for Economy Paolo Gentiloni warned on Wednesday that withdrawing fiscal assistance the European Union's member states introduced to combat the crisis caused by the COVID-19 pandemic right now would be a policy mistake and advised on "gradually" moving from "emergency measures to those that support the recovery and resilience when the health situation allows."

"The best way to secure public debt sustainability, the best way to reduce the risk of scarring and economic divergence, is to support the recovery. [...] And that fiscal policy should remain agile and effectively adjust as the situation evolves," he said. "We also know that in 2022 the overall fiscal stance should remain supportive: those with high debt can achieve that also thanks to the considerable transfers they will receive from the RRF [Recovery and Resilience Facility]."

His remarks come after European Commission President Ursula von der Leyen urged the bloc to ratify the Own Sources Decision and therefore approve the funding of the stimulus aimed at curbing the negative economic impact of the ongoing pandemic.

Breaking the News / JR